Australian biotech Telix Pharmaceuticals announced on Monday that it has agreed to acquire Germany-based ITM Isotope Technologies Munich SE for approximately $1.65 billion, based on a cash-free, debt-free valuation.

Following adjustments, ITM shareholders are expected to receive Telix shares valued at roughly $1.25 billion, priced at $11.84 per share.

Telix noted that ITM's commercially scaled and profitable isotope production operations will not only contribute significant cash flow but also further strengthen the isotope supply chain required for Telix's therapeutic pipeline.

Once the transaction closes, existing Telix shareholders will hold approximately 76.3% of the combined company, while ITM shareholders will own around 23.7%.