Runway Growth Finance Corp. (RWAY) announced today that it has entered into a definitive merger agreement to acquire SWK Holdings Corporation (SWKH), a life‑science focused specialty finance company. The transaction is a net‑asset‑value (NAV) for NAV merger with an estimated purchase price of roughly $220 million, comprising a fixed stock component of $75.5 million and a cash payment of $145 million based on SWK’s final NAV. SWK’s portfolio includes 22 companies with an approximate fair value of $242 million as of August 15 2025, providing RWAY with a diversified set of high‑quality healthcare and life‑sciences investments.
The acquisition is intended to broaden RWAY’s sector exposure beyond its core technology focus, adding depth in the healthcare and life‑sciences space. Management expects the deal to deliver mid‑single‑digit net investment income (NII) accretion and to increase total assets to $1.3 billion pro forma. The transaction also reinforces RWAY’s partnership with BC Partners Credit, leveraging the $10 billion platform to support larger deal participation while maintaining a focused BDC allocation.
The merger is expected to close in late 2025 or the first quarter of 2026, pending SWK shareholder and regulatory approvals and customary closing conditions. SWK’s board has unanimously approved the transaction, and a voting agreement has been signed by Carlson Capital L.P. to support the deal. Once closed, RWAY will integrate SWK’s portfolio and operations, expanding its origination channels and enhancing its earnings power.
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