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Filing Flows › Exelixis (EXEL) › Takeover & LBO

Is Exelixis (EXEL) a takeover target?

A leveraged buyout at today's price plus 30% ($90.21 a share) would return about 3% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 2.5% of companies with its figures were bought within a year (0.49× the average).

Share price$69.39
Offer at +30%$90.21
Buyer's IRR3%
EV / EBITDA16.3×
Buyout debt5.5× EBITDA

The buyout, step by step

EntryAmountHow
Offer price a share$90.21today's $69.39 plus 30%
× shares255.8 million
= Equity value$23.1B
+ Debt refinanced$0
− Cash$892M
= Enterprise value$22.2B21.5× EBITDA of $1.0B
Fees$444M2% of the price
New debt$5.7B5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA
Buyer's own money$17.0B75% of the cost

5 years under the buyer

Exelixis: buyout debt left, year by yearExelixis: buyout debt left, year by year$5.7BEntry$5.2BYear 1$4.6BYear 2$3.9BYear 3$3.1BYear 4$2.2BYear 5
Free cash flow after interest and tax repays the debt; a shortfall is borrowed.
YearRevenueEBITDAInterestFree cash flowDebt left
Year 1$2.7B$1.1B$434M$510M$5.2B
Year 2$2.9B$1.2B$395M$602M$4.6B
Year 3$3.0B$1.3B$349M$692M$3.9B
Year 4$3.2B$1.3B$296M$779M$3.1B
Year 5$3.3B$1.3B$236M$860M$2.2B

The exit and the buyer's return

ExitAmount
Exit multiple16.3× EBITDAtoday's trading multiple, before any premium
Enterprise value at exit$22.0B
− Debt left$2.2B
= Buyer's equity$19.8B
Money multiple1.17×on $17.0B put in
Buyer's yearly return (IRR)3.1%

Price against return

What the buyer makes at other premiums over today's $69.39.

PremiumPrice a shareBuyer's IRR
10%$76.338.2%
20%$83.275.5%
30%$90.213.1%
40%$97.151.1%
50%$104.09−0.8%

The figures used

FigureAmount
Revenue, last 12 months$2.5B
EBITDA, last 12 months$1.0B41.3% of revenue
Depreciation and amortization$27.8M
Capital spending$12.0M
Debt$0
Cash$892M
Share price$69.39on Oct 30, 2026

Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 21% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.

What a takeover could cost

Takeovers in its sector paid a median premium of 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Exelixis would cost about $93.68 a share, $24.0B for all its shares.

Premium%Price a shareAll shares
Low end (a quarter of deals paid less)22%$84.66$21.7B
Median35%$93.68$24.0B
High end (a quarter paid more)45%$100.62$25.7B

The odds, from history

Historically 2.5% of companies with its figures were bought within a year (0.49× the average). Its figures put it in decile 2 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.

Exelixis' latest quarter

Exelixis, Q3 2026: revenue $659M (+10% year over year), operating margin 40.8%, net earnings $218M, operating cash flow $280M. The chart follows the revenue to costs, profit and cash.

Questions

Is Exelixis being acquired?

No headline, 8-K or 13D about a sale is on file in the last year.

Could private equity buy Exelixis?

A leveraged buyout at today's price plus 30% ($90.21 a share) would return about 3% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.

What would a takeover of Exelixis cost?

Takeovers in its sector paid a median premium of 35% over the share price before the deal (the middle half 22% to 45%), according to the 15 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Exelixis would cost about $93.68 a share, $24.0B for all its shares.

Open the interactive view →

Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.