On October 10, 2025, Runway Growth Finance Corp. (NASDAQ: RWAY) announced that it has entered into a definitive merger agreement to acquire SWK Holdings Corporation (NASDAQ: SWKH), a life‑science‑focused specialty finance company. The transaction is a net‑asset‑value (NAV) merger that will combine SWK’s portfolio of 22 life‑science companies, valued at approximately $242 million, with Runway’s existing assets.
The estimated purchase price for the transaction is about $220 million, comprising roughly $145 million in cash and $75.5 million in Runway Growth shares valued at the closing NAV per share. In addition, Runway Growth Capital LLC will contribute $9 million in cash to be distributed to SWK shareholders, providing extra consideration beyond the primary cash and stock components. The cash payment will be based on SWK’s final NAV, which will be determined 48 hours before closing and reflect retained earnings accumulated between June 30, 2025 and the closing date.
Strategically, the acquisition expands Runway’s presence in the high‑quality, first‑liability life‑science financing niche that SWK has built over the past decade. Runway’s CEO, David Spreng, stated that adding SWK’s portfolio will diversify and optimize Runway’s investment mix, enhance earnings power, and deliver mid‑single‑digit net investment income (NII) accretion. The deal is expected to reinforce Runway’s focus on disciplined credit quality while providing SWK shareholders with a premium exit opportunity.
The transaction has received unanimous approval from SWK’s board of directors and a voting agreement from Carlson Capital L.P. The parties anticipate closing in late 2025 or the first quarter of 2026, contingent on shareholder and regulatory approvals and customary closing conditions. The merger will be a significant event for both companies, reshaping SWK’s ownership and potentially accelerating Runway’s growth strategy in the life‑science finance sector.
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