• Merck KGaA plans to acquire SpringWorks Therapeutics (NASDAQ:SWTX) for approximately $3.9 billion, aiming to enhance its portfolio in rare diseases and cancer treatments.
• The acquisition offer of $47 per share represents a 26% premium over SpringWorks' 20-day volume-weighted average price.
• Following the announcement, SpringWorks' shares saw a 2% increase in premarket trading, with Merck's shares also rising by 1.5% in Frankfurt trading.

SpringWorks Therapeutics, trading under the symbol SWTX on the NASDAQ, is a U.S.-based biotech company specializing in treatments for cancer and rare tumors. Recently, Cowen & Co. downgraded SWTX to a "Hold" rating, with the stock priced at $46.18. This decision comes amid significant developments involving the company.

Merck KGaA, a German pharmaceutical giant, has announced its intention to acquire SpringWorks for approximately $3.9 billion. This acquisition aims to bolster Merck's portfolio in rare diseases and cancer treatments. Merck has offered $47 per share, a 26% premium over SpringWorks' 20-day volume-weighted average price of $37.38, as highlighted by Investopedia.

Following the acquisition announcement, SpringWorks' shares rose by about 2% in premarket trading. Merck's shares also saw a 1.5% increase in Frankfurt trading. The acquisition values SpringWorks at $47 per share, with an enterprise value of $3.4 billion after accounting for cash reserves. Merck plans to finance the deal through available funds and new debt, expecting to enhance earnings by 2027.

SpringWorks, listed in New York six years ago, is based in Connecticut. It has two emerging products in its portfolio, focusing on cancer and rare tumor treatments. The company's market capitalization is approximately $3.46 billion, with a trading volume of 79.81 million shares. Over the past year, SWTX has seen a high of $62 and a low of $28.21.