SWK Holdings Corporation (NASDAQ:SWKH) shares are rocketing Friday after the company inked an acquisition deal to be acquired by Runway Growth Finance Corp. (NASDAQ:RWAY) for around $220 million.
The transaction will be structured as a NAV-for-NAV merger. The purchase price will be based on SWK’s June 30, 2025 financials and includes projected transaction expenses.
The price will include a stock component of around $75.5 million in Runway Growth shares, valued at the closing NAV per share.
The price also includes cash of about $145 million, which will be determined using SWK’s final NAV calculated 48 hours before closing and reflecting accumulated retained earnings from June 30, 2025, through closing.
In addition, Runway Growth Capital LLC, acting as Runway Growth’s external investment adviser, will contribute $9 million in cash for distribution to SWK shareholders, in addition to the primary consideration.
Runway projects the acquisition to deliver mid-single-digit NII accretion.
SWK’s portfolio comprises 22 companies, with an estimated fair value of approximately $242 million, based on Runway Growth as of August 15, 2025.
Runway Growth’s Founder and CEO, David Spreng, stated, “This transaction meaningfully advances our strategy to diversify and optimize our portfolio by adding SWK’s high-quality investments in the key sectors of healthcare and life sciences.”
“Looking ahead, and with the full support of BC Partners Advisors L.P., we are pursuing growth through both organic and inorganic strategies as a permanent capital vehicle backed by the $10 billion BC Partners Credit platform. We are doing all of this while growing our shareholder base, improving our existing robust portfolio metrics and increasing our total assets to $1.3 billion pro forma with the SWK merger transaction.”
As of June 30, 2025, Runway had around $297.0 million in available liquidity, including unrestricted cash and cash equivalents of $6.0 million.
Price Action: SWKH shares were trading higher by 20.76% to $17.39 premarket at last check Friday.
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