Telix to acquire ITM for US$1.65b

UBS First Read on Telix Pharmaceuticals (TLX.AX). Telix will acquire ITM for US$1.65b upfront, on a cash and debt-free basis, comprising US$1.25b in stock (at US$11.84/sh), US$302m of assumed net debt and US$96m related to management equity rollover and transaction expenses payable by the sellers. ITM shareholders will own 23.7% of TLX at completion. The deal also includes US$700m in contingent consideration, consisting of US$250m tied to ITM-11 FDA approvals and up to US$450m linked to FY30 global net sales (calculated at 3x ITM-11 global net sales, above US$150m). Transaction expected to close by end of 2026, subject to Telix shareholder approval, regulatory approvals and customary closing conditions. ITM is a best-in-class radioisotope manufacturing company based in Germany and the primary external supplier of Pluvicto (Novartis' PCa therapeutic);