Merck KGaA, Darmstadt, Germany to Acquire SpringWorks Therapeutics to Accelerate Sustainable Growth of Healthcare Business

Core Viewpoint - Merck KGaA, Darmstadt, Germany is set to acquire SpringWorks Therapeutics for $47 per share, totaling an equity value of approximately $3.9 billion, which will enhance its Healthcare business and expand its presence in the U.S. market [1][2][9] Group 1: Acquisition Details - The acquisition price of $47 per share represents a 26% premium over SpringWorks' unaffected 20-day volume-weighted average price of $37.38 as of February 7, 2025 [1] - The enterprise value of the transaction is approximately $3.4 billion (€3.0 billion) based on SpringWorks' cash balance as of December 31, 2024 [1] - The transaction is expected to close in the second half of 2025, pending shareholder and regulatory approvals [9] Group 2: Strategic Importance - This acquisition aligns with Merck KGaA's strategy to diversify its portfolio and focus on rare tumors, which is a growing area in the healthcare sector [2][4] - The planned acquisition will immediately contribute to Merck KGaA's revenues and is expected to be accretive to earnings per share by 2027 [3] - Merck KGaA aims to leverage SpringWorks' innovative therapies to enhance its offerings in the rare tumor market [5][6] Group 3: SpringWorks' Portfolio - SpringWorks has developed first-in-class therapies for rare tumors, including OGSIVEO® for desmoid tumors and GOMEKLI™ for neurofibromatosis type 1-associated plexiform neurofibromas [7][8] - The acquisition will allow SpringWorks to expand its market reach beyond the U.S. and utilize Merck KGaA's global resources [6][11] - SpringWorks' ongoing pipeline includes additional programs targeting underserved tumor settings, which will complement Merck KGaA's existing portfolio [8][11]