Halozyme Therapeutics, Inc. (HALO.US) plans to acquire Evotech (EVO.US) for $2.1 billion in cash.

According to foreign media reports, Helen Torley, CEO of Halozyme Therapeutics, Inc. (HALO.US), stated that the company plans to finance the acquisition of German company Evotec (EVO.US) with cash of 2 billion euros (approximately 2.1 billion US dollars). Torley said in an interview, "We are confident that we will be able to fund this transaction in full cash. We will not use any equity." She added, "Due to some debt that we are taking on, our strong cash flow will allow us to quickly reduce our leverage to two times after the transaction is completed." It is reported that Halozyme Therapeutics, Inc. based in San Diego is expected to provide funding for part of the acquisition with approximately $600 million in cash on hand and the remaining debt. Torley also mentioned that the company is finalizing debt financing with potential bank lenders. Halozyme Therapeutics, Inc. produces delivery devices that can rapidly deliver large amounts of drugs into patients' bodies. Its pharmaceutical partners include Johnson & Johnson (JNJ.US) and Bristol-Myers Squibb Company (BMS). Meanwhile, Evotec will help pharmaceutical companies select molecules for further development and drug manufacturing. The report mentioned that private equity firm Triton Partners has disclosed its stake in Evotec and has been considering launching an acquisition. The report quoted Torley saying, "We believe this is a great way to enhance Halozyme Therapeutics, Inc.'s already strong revenue growth story." "We already have drug delivery, which will complement drug discovery and manufacturing."