What happened Shares of GW Pharmaceuticals (NASDAQ: GWPH) were skyrocketing 46.3% as of 10:45 a.m. EST on Wednesday. The huge gain came after Jazz Pharmaceuticals (NASDAQ: JAZZ) announced plans to acquire GW for $7.2 billion. So what It's certainly not surprising in the least that GW Pharmaceuticals' shares took off today. Jazz's offer of $220 per share for GW represents a 50% premium to the closing price of the cannabinoid-focused biotech stock on Tuesday. Image source: Getty Images. While the overall price tag for the deal is $7.2 billion, the actual amount Jazz will fork over is less than that. Net of GW's cash, the transaction value is pegged at $6.7 billion. Jazz offered $200 in cash plus $20 in its stock for every American depositary share (ADS) of GW. Why did Jazz choose to buy GW? Jazz Pharmaceuticals CEO Bruce Cozadd stated that GW's cannabinoid platform and pipeline "will strengthen and broaden our neuroscience portfolio, further diversify our revenue and drive sustainable, long-term value creation opportunities." GW Pharmaceuticals' crown jewel is Epidiolex. It was the first plant-derived cannabis drug approved by the U.S. Food and Drug Administration (FDA). Epidiolex's first FDA approvals were for Dravet syndrome and Lennox-Gastaut syndrome. It later obtained FDA approval for tuberous sclerosis complex. All three are rare diseases linked to early onset epilepsy. Jazz expects the transaction will accelerate its revenue growth. It also looks for the acquisition of GW to be accretive to earnings in the first full year of combined operations. Now what It's not a done deal just yet. Both companies' boards of directors have unanimously approved the acquisition. However, GW' shareholders must also vote in favor of the buyout. In addition, Jazz and GW will have to obtain regulatory approvals. However, the companies expect the transaction will close in the second quarter of 2021. 10 stocks we like better than GW PharmaceuticalsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and GW Pharmaceuticals wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source