SpringWorks Therapeutics Set to be Acquired by Merck KGaA for $3.9 Billion
Deal News | Apr 28, 2025 | Goodwin
In a significant development in the biopharmaceutical sector, Merck KGaA, Darmstadt, Germany, has entered into a definitive agreement to acquire SpringWorks Therapeutics for $3.9 billion. The acquisition values SpringWorks’ equity at approximately $3.9 billion or an enterprise value of $3.4 billion. This represents a 26% premium over the unaffected 20-day volume-weighted average price of SpringWorks. The boards of both companies have given unanimous approval for the deal, which is anticipated to close in the latter half of 2025, subject to customary closing conditions, shareholder approval, and regulatory approvals. SpringWorks is renowned for its contributions to treating severe rare diseases and cancer, notably with its FDA-approved medicines nirogacestat and mirdametinib. Goodwin's legal counsel team spearheaded the advisory process for SpringWorks.
Sectors
- Biopharmaceuticals
- Mergers & Acquisitions
Geography
- Germany – Merck KGaA, the acquiring company, is based in Darmstadt, Germany, making the country's regulatory and business environment relevant to the transaction.
- United States – SpringWorks Therapeutics, the target company, operates within the U.S., where it is publicly traded and where its drug development is based.
Industry
- Biopharmaceuticals – The industry involves the development of medical drugs using biotechnology. SpringWorks Therapeutics is a commercial-stage biopharmaceutical entity focusing on severe rare diseases and cancer.
- Mergers & Acquisitions – This involves the consolidation of companies or assets through various types of financial transactions. The acquisition of SpringWorks Therapeutics by Merck KGaA is a significant M&A activity.
Financials
- $3.9 billion – The equity value for the acquisition of SpringWorks Therapeutics by Merck KGaA.
- $3.4 billion – The enterprise value of SpringWorks Therapeutics after adjusting for its cash balance as of December 31, 2024.
- 26% – The premium over the unaffected 20-day volume-weighted average price of SpringWorks’ stock.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| SpringWorks Therapeutics | Target | Company | A U.S.-based biopharmaceutical company focused on treating rare diseases and cancer. |
| Merck KGaA, Darmstadt, Germany | Bidding Company | Company | A leading science and technology company in healthcare, life science, and performance materials located in Germany. |
| Goodwin | Legal Advisor | Company | The law firm that advised SpringWorks Therapeutics on the acquisition deal. |
| Stuart Cable | Lead Legal Advisor | Person | Led the Goodwin legal advisory team for the transaction. |