Silence Therapeutics plc (NASDAQ:SLN) announced Monday that Germany's Merck KGaA (OTC:MKKGY) (OTC:MKGAF) agreed to acquire the biotechnology company for approximately $1.3 billion in cash, expanding its portfolio of treatments for rare diseases.
Following the announcement, Silence Therapeutics stock jumped nearly 126%. Trading volume reached 57.883 million shares, compared with the 100-day average of 1.187 million shares. That represents nearly 49 times the stock's average daily trading volume, highlighting heightened investor interest following the $1.3 billion buyout agreement.
Under the agreement, Merck KGaA will pay $20 per American depositary share (ADS), representing a 130% premium to Silence's closing price on Friday, Oct. 16.
The offer also represents an 82% premium to the stock's 30-day volume-weighted average price of $10.99. The deal carries an enterprise value of $1.1 billion and an equity value of approximately $1.3 billion.
Acquisition Strengthens Rare Disease Pipeline
The acquisition will give Merck KGaA access to Silence's proprietary small interfering RNA (siRNA) technology and its experimental drug, divesiran.
Divesiran targets polycythemia vera, a rare blood cancer that causes excessive red blood cell production and increases the risk of blood clots.
The treatment aims to reduce red blood cell production by regulating iron availability. It has received Fast Track and Orphan Drug designations from the U.S. Food and Drug Administration.
Silence recently reported promising Phase 2 trial results for divesiran.
Silence Chairman and interim CEO Iain Ross said the agreement followed a competitive sale process. He added that Merck KGaA's resources and commercial capabilities could accelerate divesiran's Phase 3 development.
Merck KGaA CEO Kai Beckmann said the acquisition would strengthen the company's focus on specialty and rare diseases.
The transaction also builds on Merck KGaA's acquisition of SpringWorks Therapeutics last year.
Deal Expected To Close In Early 2027
The companies expect to complete the transaction in the first quarter of 2027, subject to shareholder, regulatory and court approvals.
Silence's board unanimously approved the deal. Shareholders representing approximately 14% of voting power have agreed to support the transaction.
The acquisition will proceed through a U.K. scheme of arrangement.
Silence Therapeutics Price Action
SLN Price Action: Silence Therapeutics shares were up 125.63% at $19.58 at the time of publication on Monday. The stock is trading at a new 52-week high, according to market data.
