Actavis will offer $129.22 in cash and 0.3683 shares of Actavis for each outstanding share of the botox maker. The bid is higher than the $54 billion bid that Valeant (VRX) made for Allergan earlier in the year.
Allergan resisted the bid from Valeant, but the company's board unanimously approved the offer from Actavis.
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"Today's transaction provides Allergan stockholders with substantial and immediate value, as well as the opportunity to participate in the significant upside potential of the combined company," Allergan chairman and CEO David E. I. Pyott said in a statement.
Shares of Actavis were gaining 3.6% to $252.61.
TheStreet Ratings team rates ALLERGAN INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALLERGAN INC (AGN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."