06:35 AM EDT, 04/28/2025 (MT Newswires) -- SpringWorks Therapeutics ( SWTX ) stock rose early Monday after the biopharmaceutical company agreed to be acquired by German science and technology firm Merck, which aims to strengthen its healthcare presence in the US.

Merck will pay $47 per share in cash for SpringWorks, representing an equity value of about $3.9 billion or an enterprise value of $3.4 billion, the companies said in separate statements. The deal reflects a 26% premium to SpringWorks' 20-day volume-weighted average price as of Feb. 7, the day before market speculation began of a potential transaction between the companies.

Shares of SpringWorks, which focuses on rare diseases and cancer, gained 1.5% in the most recent premarket activity.

"We believe that by joining forces with Merck KGaA, Darmstadt, Germany, we are not only creating significant, immediate value for our stakeholders, but we will also be able to leverage their resources and expertise to build a brighter future for the patient communities we seek to serve while also creating new opportunities for SpringWorks employees as part of a global organization," SpringWorks Chief Executive Saqib Islam said in a statement.

The deal, which requires approval from SpringWorks' shareholders and clearance from regulators, is expected to be completed in the second half.

The transaction reflects Merck's strategy to strengthen its healthcare operations in the US and is expected to immediately contribute to its revenue, as well as be accretive to its per-share earnings in 2027. The company plans to fund the acquisition with available cash and new debt.

"The agreed acquisition of SpringWorks is a major step in our active portfolio strategy to position Merck KGaA, Darmstadt, Germany as a globally diversified, innovation and technology powerhouse," according to Merck CEO Belen Garijo. "For our healthcare sector, it sharpens the focus on rare tumors, accelerates growth, and strengthens our presence in the US."

In February, SpringWorks reported a fourth-quarter net loss of $1.04 per share, down from a $1.44 loss the year before. It recorded product revenue of $61.5 million for its progressing desmoid tumors treatment Ogsiveo, or nirogacestat, in the quarter.

The company's marketing authorization application for Ogsiveo is under review by the European Medicines Agency, with a decision expected in the second quarter.