Merck KGaA, the family-controlled German pharmaceutical company, announced a deal to acquire SpringWorks Therapeutics for approximately $3.9 billion. The acquisition price of $47 per share represents an enterprise value of $3.4 billion after accounting for SpringWorks’ cash holdings. This transaction marks one of the largest deals in recent years for Merck, though it came in 22% lower than analysts’ expectations following earlier reports of advanced negotiations.
Merck’s shares initially dipped at market open but later recovered, rising by 1.2%. The deal will be financed through available cash and new debt, with expectations of accretive earnings per share by 2027. SpringWorks, based in Stamford, Connecticut, specializes in developing treatments for cancer and rare tumors.
Peter Guenter, head of healthcare at Merck, expressed optimism about establishing leadership in rare tumor treatments and expanding investments in this area. The transaction is expected to close in the second half of 2025, pending shareholder approval and regulatory clearance.
— new from Reuters
