AbbVie Inc (NYSE:ABBV) said it has agreed to buy Shire PLC (ADR) (NASDAQ:SHPG) for approximately GBP32 billion ($54.8 billion) or GBP52.48 per share, comprised of GB24.44 in cash and 0.8960 new AbbVie shares.

The bid is nearly 33% higher than the initial offer of GBP39.50 per share that was made in May. Since then, AbbVie raised its offer several times. The third offer was at GBP46.26 per share and the last one, prior to today, was at GBP51.15.

The total value of the offer is based on AbbVie’s closing share price of $53.52 on July 17, the day before the deal was announced and values Shire at an approximate 53% premium to the price of Shire shares on May 2, the last business day before the initial takeover offer. Shire shareholders will own about 25% of the combined company.

AbbVie said the deal is expected to be accretive to its adjusted EPS in the first year after completion, growing to above $1 per share by 2020, with “material ongoing financial and operating benefits.” Furthermore, it said the deal is expected to reduce the effective tax rate for New AbbVie to approximately 13% by 2016.

“By combining AbbVie and Shire, we’re creating a unique, diversified biopharmaceutical company. The combined company would benefit from a best-in-class product development platform, a stronger pipeline and more enhanced R&D capabilities,” CEO Richard Gonzales said in statement. The company said it intends to still increase its dividend payouts and implement a “significant share repurchase program.”

The Shire board recommended the offer. SHPG was up 0.2% in recent trade, in the upper half of the 52-week range between $101.44 and $257.95. The high was reached Thursday. ABBV was unchanged in recent trade, in the upper half of the 52-week range between $42.25 and $58.27.

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