Bluebird Bio, Inc. ( BLUE ) , on Friday, entered into a definitive agreement to be acquired by global investment firms Carlyle Group Inc. ( CG ) and SK Capital Partners.

The agreement, which also includes a team of biotech executives, will see Bluebird Bio’s stockholders receive $3.00 per share in cash, along with a contingent value right, which could potentially bring the total payout to up to $9.84 per share, depending on the product portfolio performance.

The acquisition will provide Bluebird Bio ( BLUE ) with capital to scale its commercial delivery of gene therapies for patients suffering from sickle cell disease, β-thalassemia, and cerebral adrenoleukodystrophy.

Following the acquisition’s completion, former Mirati Therapeutics CEO David Meek is expected to take over as Bluebird Bio’s new CEO.

This strategic acquisition comes after Bluebird Bio’s financial struggles, including the denial of a priority review voucher by the FDA and mounting challenges that could have led to a loan default.

This strategic acquisition comes after Bluebird Bio’s challenges, including the denial of a priority review voucher by the FDA and mounting financial issues that could have led to a loan default.

Also Read: Apple’s Visual Intelligence May Come To iPhone 15 Pro: Here’s How It Can Transform Your Camera With AI-Powered Real-Time Search

The deal is anticipated to close in the first half of 2025, subject to regulatory approvals and customary closing conditions.

“For more than a decade, bluebird has been at the forefront of gene therapy, delivering groundbreaking treatments to patients facing life-threatening genetic diseases,” said Andrew Obenshain, current CEO of Bluebird Bio ( BLUE ). “However, as our financial challenges mounted, it became clear that securing the right strategic partner was critical to maximizing value for our stockholders and ensuring the long-term future of our therapies.”

Upon completion of the deal, bluebird will become a privately held company, and its shares will no longer be publicly traded.

In addition, Bluebird Bio ( BLUE ) has entered into amendments to its loan agreement with Hercules Capital to facilitate adequate liquidity to position it to maintain operations through the closing.

Price Action: BLUE shares traded lower by 37.5% to $4.40 premarket at last check Friday.

Read Next:

Institutional Investors Load Up On Technology And Financial Stocks In Q4 While Reducing Positions In Healthcare Sector Amid Political Uncertainty