Merck KGaA to Buy Silence Therapeutics for $20 a Share, About $1.3 Billion; Shares Jump 125%

Merck KGaA, Darmstadt, Germany has agreed to acquire UK biotech Silence Therapeutics for $20.00 in cash per American Depositary Share, the companies said on October 19. The offer values Silence at about $1.3 billion in equity and $1.1 billion in enterprise value, which explains why some outlets reported $1.3 billion and others $1.1 billion. The price is a 130% premium to the October 16 closing price and an 82% premium to the 30-day volume-weighted average of $10.99.

The prize is divesiran, an siRNA drug for polycythemia vera, a rare blood cancer, which holds FDA Fast Track and Orphan Drug designations. Silence described its Phase 2 data in the disease as potentially best-in-class, and the company also brings a broader pipeline of siRNA candidates. Merck KGaA chief executive Kai Beckmann said the planned acquisition "will strengthen our capabilities to serve patients". Silence chairman Iain Ross said the agreement followed a competitive sale process.

Silence shares jumped more than 125% in premarket trading on Monday, leaving them just below the offer price. The deal will be carried out through a UK scheme of arrangement and needs Silence shareholder approval and sanction from the High Court of England and Wales; holders of about 14% of Silence's voting power have signed support agreements.

What to watch: the shareholder vote and court timetable ahead of the expected first-quarter 2027 close, regulatory approvals, and how Merck KGaA plans the late-stage development of divesiran.