Germany’s Merck KGaA has agreed to acquire Silence Therapeutics in an all-cash transaction valuing the biotechnology company’s equity at approximately $1.3 billion and its enterprise value at $1.1 billion.
Silence shareholders will receive $20 per American Depositary Share, equivalent to $6.6667 per ordinary share. The offer represents a 130% premium to the ADS closing price on Oct. 16 and an 82% premium to its 30-day volume-weighted average price.
The acquisition is expected to close in the first quarter of 2027, subject to shareholder and regulatory approvals, court sanction and other customary conditions. Silence’s board unanimously approved the agreement.
Securityholders representing approximately 14% of Silence’s voting power have agreed to support the transaction, which will proceed through a U.K. scheme of arrangement.
The deal gives Merck access to Silence’s pipeline of short interfering RNA medicines, including divesiran, an experimental treatment for polycythemia vera, a rare blood cancer characterized by excessive red blood cell production.
Divesiran targets the liver-expressed gene TMPRSS6 to increase hepcidin, a hormone regulating iron metabolism. The treatment aims to limit iron available to bone marrow and thereby reduce excessive red blood cell production.
The drug has received FDA Fast Track and Orphan Drug designations. Silence said the acquisition follows Phase 2 results and would support further development toward Phase 3.
Silence Chairman and Interim Principal Executive Officer Iain Ross said the agreement followed a competitive sale process. Merck Chief Executive Kai Beckmann said the purchase would expand its specialty and rare disease capabilities, following last year’s acquisition of SpringWorks Therapeutics.
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