SpringWorks To Be Acquired By Merck KGaA For $3.9 Billion
Deal News | Apr 28, 2025 | Goodwin
SpringWorks Therapeutics, a biopharmaceutical company focused on rare diseases and cancer treatment, has entered into a definitive agreement to be acquired by German healthcare giant Merck KGaA for approximately $3.9 billion. The proposed purchase aspect of $47.00 per share signifies a premium of 26% over the pre-speculation price of SpringWorks' stock. Both boards have unanimously approved the acquisition, which is on track to close in the second half of 2025, pending customary conditions and necessary approvals. The transaction underlines Merck KGaA's strategy to expand its portfolio in the rare disease and oncology sectors. The deal is expected to enhance Mercck KGaA’s capabilities in offering innovative solutions, especially leveraging SpringWorks' FDA-approved medicines like OGSIVEO for desmoid tumors and GOMEKLI for neurofibromatosis. The legal guidance for SpringWorks was provided by Goodwin’s Life Sciences and Public M&A teams.
Sectors
- Biopharmaceutical
- Healthcare
- Mergers and Acquisitions (M&A)
Geography
- Germany – Merck KGaA is based in Darmstadt, Germany, making the country a central geography in the transaction.
- United States – SpringWorks Therapeutics is a U.S.-based biopharmaceutical firm, emphasizing the relevance of this geography.
Industry
- Biopharmaceutical – This industry is central to the article as SpringWorks is a biopharmaceutical company focused on developing therapies for severe rare diseases and cancers.
- Healthcare – Merck KGaA is an established entity within the healthcare industry and its acquisition of SpringWorks aligns with its aim to expand capabilities in rare diseases and oncology.
- Mergers and Acquisitions (M&A) – The article discusses an acquisition deal valued at $3.9 billion, making M&A a relevant classification.
Financials
- $3.9 billion – The equity purchase price for acquiring SpringWorks Therapeutics by Merck KGaA.
- $3.4 billion – The enterprise value of SpringWorks Therapeutics based on its cash balance as of December 31, 2024.
- 26% – The premium over the 20-day volume-weighted average price of SpringWorks stock prior to speculation.
- $47.00 – The per-share price at which SpringWorks will be acquired.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| SpringWorks Therapeutics | Target Company | Company | A biopharmaceutical company focused on rare diseases and cancer. |
| Merck KGaA, Darmstadt, Germany | Bidding Company | Company | A German multinational company focusing on healthcare, life sciences, and performance materials. |
| Goodwin | Legal Advisor | Company | The legal advisor for SpringWorks in the acquisition deal. |