Versartis Inc. and Aravive Biologics Inc. entered into a definitive agreement under which Aravive will merge with a unit of Versartis in an all-stock transaction.
After the closing of the transaction, the merged company will operate under the Aravive Inc. name, and the company's common stock is expected to continue to trade on NASDAQ under a new ticker symbol.
Following the proposed merger, which has been approved by the boards of both companies, Versartis and Aravive equity holders are each expected to own about 50% of the combined company.
The transaction is expected to close during the second half of 2018, subject to approval by the stockholders of Versartis and Aravive and the satisfaction or waiver of other customary closing conditions.
Jay Shepard, president and CEO of Versartis, will be the CEO of the combined company. In addition, Srinivas Akkaraju will serve as board chairman, and Ray Tabibiazar, the executive chairman of Aravive, will continue to serve on the combined company's board.
The remaining senior management team will be comprised of current Aravive and Versartis personnel. The board of the combined company will consist of seven representatives: three designated by Versartis, three by Aravive, and one independent director mutually agreed upon by the companies.
Cowen acted as exclusive financial adviser to Versartis on the proposed deal and Cooley LLP served as legal counsel to the company. Wedbush PacGrow acted as exclusive financial adviser to Aravive on the proposed merger and Gracin & Marlow LLP and Lowenstein Sandler LLP served as legal counsel.
