Two months after confirming “advanced talks” for a potential merger, Stamford-based SpringWorks Therapeutics Inc. on Monday announced a definitive agreement to be acquired by Germany-based Merck KGaA in a deal valued at about $3.9 billion.
Under the agreement, Merck will pay $47 per share in cash, based on SpringWorks’ cash balance as of Dec. 31, 2024, and a 26% premium on SpringWorks’ unaffected 20-day volume-weighted average price of $37.38 per share on Feb. 7, 2025.
SpringWorks’ stock, which trades on the Nasdaq stock exchange under the symbol SWTX, was set to open Monday at $44.72 per share.
SpringWorks is a commercial-stage biotech company developing treatments for rare diseases and cancer. It went public in 2019, and at the time the “advanced talks” were announced was valued at about $4 billion, according to Reuters.
Merck KGaA said the acquisition will be funded with available cash and new debt. It added that, upon closing, the business combination will immediately contribute to Merck KGaA’s revenues and is expected to be accretive to its earnings per share in 2027.
Merck said the acquisition provides SpringWorks with an opportunity to expand its reach into markets beyond the U.S. and leverage the resources of Merck KGaA’s global healthcare organization.
The deal has been approved by both the Merck KGaA and SpringWorks’ boards of directors and is expected to close in the second half of 2025, subject to satisfying customary closing conditions, including approval of SpringWorks’ shareholders and receiving the required regulatory approvals.
Merck, based in Darmstadt, Germany, owns about 250 companies and has more than 60,000 employees.
