Street Calls of the Week
Investing.com -- SWK Holdings Corp (NASDAQ:SWKH) stock surged 19.8% in premarket trading Friday after Runway Growth Finance Corp (NASDAQ:RWAY) announced it will acquire the life science focused specialty finance company.
The definitive merger agreement values SWK at approximately $220 million, based on SWK’s June 30, 2025 reported financials and including estimated transaction expenses. The deal includes $75.5 million in Runway Growth shares and approximately $145 million in cash.
Runway Growth, a provider of flexible capital solutions to late- and growth-stage companies, expects the acquisition to expand its position in the healthcare and life sciences sector. Through this transaction, Runway Growth’s healthcare investments will increase to approximately 31% of its portfolio from 14% as of June 30, 2025.
The acquisition will expand Runway Growth’s balance sheet to $1.3 billion in total assets and is expected to generate mid-single-digit run-rate NII accretion during the first full quarter following the transaction close.
SWK’s portfolio includes 22 companies with an approximate fair value of $242 million based on Runway Growth’s estimates as of August 15, 2025.
The transaction is structured as a net asset value-for-net asset value merger. Additionally, Runway Growth Capital LLC will contribute $9 million in cash for distribution to SWK stockholders.
SWK’s Board of Directors has unanimously approved the transaction, and Carlson Capital L.P. has signed a voting agreement supporting the deal. The acquisition is expected to close in late 2025 or the first quarter of 2026, pending SWK shareholder and regulatory approvals.
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