12:49 PM EST, 01/10/2025 (MT Newswires) -- (Updates with stock price movement in headline and first paragraph.)

Royalty Pharma ( RPRX ) shares jumped past 12% in recent Friday trading after the company said it would acquire its external manager, RP Management, for about $1.1 billion, including 24.5 million in shares that will vest over five to nine years, about $100 million in cash, and the assumption of $380 million of debt.

The transaction is meant to simplify its corporate structure and reduce costs, generating anticipated cash savings of more than $100 million in 2026 and $175 million in 2030, the company said.

The transaction is expected to close in Q2, the company said.

The company said it also approved a new $3 billion share repurchase program, including $2 billion in shares it expects to buy back in 2025.

The repurchase program replaces the unused $465 million of the company's $1.0 billion share repurchase program launched in 2023, the company said.

Price: 29.41, Change: +3.21, Percent Change: +12.25