Germany's Merck KGaA has struck a deal to buy U.S. biotech company SpringWorks Therapeutics for an equity value of $3.9 billion to add rare cancer therapies ahead of expected revenue losses linked to expiring patents.

Purchase price of $47 per share in cash represents an equity value of approximately $3.9 billion, or an enterprise value of $3.4 billion (€3.0 billion) – – Planned acquisition will immediately add revenue and accelerate mid- to long-term growth for Merck KGaA,

KEY TAKEAWAYS German drug company Merck KGaA said Monday it has struck a deal to buy U.S. biotech firm SpringWorks Therapeutics for around $3.9 billion, expanding its portfolio of rare disease and cancer treatments.