Runway Growth Finance said it agreed to acquire SWK Holdings, a life science focused specialty finance company, for an estimated purchase price of about $220 million.
SWK provides minimally dilutive financing to small- and mid-sized commercial-stage healthcare companies, Runway said. Its portfolio includes 22 companies.
The deal includes a fixed stock component expected to total $75.5 million in Runway Growth shares, as well as approximately $145 million in cash.
David Spreng, Runway's founder and chief executive, said the deal advances the company's strategy to diversify and optimize its portfolio. Additionally, the deal expands Runway's position and investment capabilities in the healthcare and life sciences sector, the specialty finance company said.
Other benefits of the deal include enhancements to Runway Growth's financial profile and a larger shareholder base, it added.
The deal is expected to close in the fourth quarter.
In after-hours trading, shares of SWK Holdings were trading 14% higher, at $16.47. The stock closed the day's regular session basically flat, at $14.40.
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