Putting an end to rumors, Actavis plc (ACT – Analyst Report) confirmed that it will be acquiring Botox maker Allergan (AGN – Analyst Report) in a cash and stock transaction ($129.22 in cash and 0.3683 Actavis shares for each share of Allergan common stock) valued at about $66 billion or $219 per share. Brent Saunders, Actavis’ CEO and President, will lead the combined company. While Allergan’s shares were up 5.31% on the news, Actavis’ shares gained 1.71%.

How Will Actavis Benefit?

With the Allergan acquisition, Actavis will be able to strengthen its global presence especially in Canada, Europe and Southeast Asia and other high-value growth markets like China, India, the Middle East and Latin America. Meanwhile, the combined U.S. sales force will ensure increased marketing reach.

The addition of several blockbuster therapeutic franchises will boost Actavis’ North American Specialty Brands business significantly. Actavis said that, on a pro forma basis for the full year 2015, the combined company will have three blockbuster franchises (ophthalmology, neurosciences/CNS and medical aesthetics/dermatology/plastic surgery) each with annual revenues of more than $3 billion.

Meanwhile, the specialty product franchises (gastroenterology, cardiovascular, women’s health, urology and infectious disease) will have combined revenues of about $4 billion.

Actavis expects combined pro forma revenues to cross $23 billion in 2015 and the deal to be earnings accretive (double-digit accretion) within a year. Revenues generated by Actavis’ brands business as well as international revenues will double with this acquisition. Pro forma international revenues in 2015 are expected to be about $5 billion.

Actavis expects annual synergies of at least $1.8 billion starting from 2016 – this is in addition to the $475 million of annual savings previously announced by Allergan. Actavis intends to invest $1.7 billion every year on R&D. Once the acquisition goes through, Actavis’ pipeline should be boosted by about 15 near- and mid-term projects.