Globenewswireยท2025-10-09 21:45Core Viewpoint - Runway Growth Finance Corp. has announced a definitive merger agreement to acquire SWK Holdings Corporation, enhancing its portfolio in healthcare and life sciences while optimizing its financial profile and expected net investment income accretion [1][2]. Transaction Overview - The estimated purchase price for the acquisition is approximately $220 million, consisting of $75.5 million in Runway Growth shares and about $145 million in cash [4]. - The transaction is structured as a net asset value-for-net asset value merger, with cash payments based on SWK's final NAV prior to closing [4]. Strategic Implications - The acquisition will increase Runway Growth's healthcare investments from 14% to approximately 31% of its portfolio, expanding its exposure in a growing market [5]. - The total assets of Runway Growth are expected to reach $1.3 billion pro forma following the merger, enhancing its balance sheet and portfolio metrics [5]. Financial Impact - The merger is anticipated to generate mid-single-digit run-rate net investment income accretion in the first full quarter post-transaction [5]. - Improvements in dividend coverage and return on equity (ROE) are expected, along with an expansion of Runway Growth's pro forma leverage ratio [5]. Governance and Approval - SWK's Board of Directors has unanimously approved the transaction, which is expected to close in late 2025 or early 2026, pending shareholder and regulatory approvals [7].