Germany’s Merck KGaA entered a merger agreement on April 28, 2025, to acquire U.S.-based SpringWorks Therapeutics, Inc. (SWTX) in an all-cash deal valued at $3.4 billion.
Under the terms of the agreement, Merck KGaA will acquire SpringWorks for a purchase price of $47 per share in cash, representing a premium of 5.1% from the stock’s last close.
SpringWorks is a commercial-stage biopharmaceutical company focused on developing and commercializing innovative medicines for patients with rare diseases and cancer, including the FDA-approved therapies OGSIVEO for desmoid tumors, an aggressive disease affecting soft tissue, and GOMEKLI for NF1-associated plexiform neurofibromas, characterized by nerve sheath tumours.
Merck KGaA is a global science and technology company headquartered in Darmstadt, Germany, operating across healthcare, life science, and electronics sectors. With approximately 63,000 employees in 65 countries, the company focuses on developing innovative solutions to enhance quality of life and drive technological progress.
In February, reports were making the rounds about Merck KGaA being in advanced talks to acquire Springworks. The stock was trading at $40.28 before those early rumors, but had jumped up to $54 after the report came out.
Last week, Merck KGaA confirmed its late-stage discussions with SpringWorks where they were discussing a purchase price of $47 per share.
The deal will be financed through available cash and new debt, and is expected to be accretive to Merck’s adjusted earnings per share by 2027.
The transaction is expected to close in the second half of 2025.
Belen Garijo, the CEO of Merck, said that the planned acquisition will strengthen Merck’s Healthcare business presence in the United States. “Beyond this planned transaction, we will continue to explore M&A opportunities across our three complementary business sectors, always with a firm focus on strategic fit, financial robustness, and long-term value creation,” Garijo said. Merck plans to focus next on its Life Science sector.
Centerview Partners and Goldman Sachs advised SpringWorks Therapeutics on the financial aspects of the deal, with Goodwin Procter serving as legal counsel. Merck KGaA was advised by J.P. Morgan on financial matters and by Sullivan & Cromwell on legal matters.
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Editor’s Note: Baranjot Kaur contributed to this article