June 12 (Reuters) - German biotech firm BioNTech

said on Thursday it agreed to acquire domestic peer

CureVac ( CVAC ) for about $1.25 billion worth of BioNTech

shares to boost its work on new mRNA-based cancer treatments.

The agreed deal, which pairs up two former rivals in the

race to develop COVID-19 vaccines, each CureVac ( CVAC ) share will be

exchanged for about $5.46 in BioNTech American depositary

shares, BioNTech said.

"With the acquisition, BioNTech aims to strengthen the

research, development, manufacturing, and commercialization of

investigational mRNA-based cancer immunotherapy," it added.

The payment in shares is subject to a collar mechanism, the

company said.