The Life Sciences and M&A teams advised EQRx (Nasdaq: EQRX) in its definitive agreement to be acquired by Revolution Medicines (Nasdaq: RVMD) in an all-stock transaction intended to add more than $1 billion in net cash to Revolution Medicines’ balance sheet.

The exchange ratio formula in the merger agreement uses a blended average to account for developments in Revolution Medicines’ ongoing business and potential movement in its stock price. Approximately 80% of the exchange ratio is based on Revolution Medicines’ public market stock price measured in close proximity to the EQRx stockholder vote and the remaining 20% of the exchange ratio is a determined price per share of Revolution Medicines’ stock as of the signing of the merger agreement. Specifically, at closing, EQRx stockholders will receive the number of shares of Revolution Medicines common stock equal to the sum of 7,692,308 Revolution Medicines shares (determined as $200 million divided by $26.00 per share) plus a number of shares equal to $870 million divided by a price that is a 6% discount to the 5-day volume-weighted average Revolution Medicines share price measured in close proximity to the stockholder vote.

The transaction is expected to close in November 2023, subject to satisfaction of customary closing conditions, including regulatory review, and approval by Revolution Medicines’ and EQRx’s stockholders. Upon completion of the transaction, EQRx shares will cease trading on the Nasdaq Global Market.

EQRx is a biopharmaceutical company committed to developing and commercializing innovative medicines for some of the most prevalent disease areas.

The Goodwin team was led by Stuart Cable, Lisa Haddad, Andrew Goodman, Tevia Pollard and Bill Collins, and included Bryan Kultgen, Stephanie Barbanell, Peter Moorman, Patrick O’Brien, Evan De Ycaza, Claire Zhang and Wilson Hall (Public M&A), Marianne Sarrazin, Jonathan Elefant, Della Fok, David Li, Ravneet Purewal, Neil Doogan, Dan Liu, Isabelle Anselmo, and Nathan J. Nelson (Corporate), Sarah Bock, Morgan Frisoli and Chris Jones (Executive Compensation and Benefits), Jennifer Fay and Caroline Galiatsos (Labor and Employment), Catherine McCarty, Ioana Davies, Suzanne Nguyen and Gregory Gutierrez (Intellectual Property), Beni Surpin and Christopher Zhong (Licensing); Dan Karelitz and Benjamin Gossels (Tax), Deborah Birnbach, Jen Luz, Katherine Dacey, and Angela Berkowitz (Litigation), Srikanth Reddy (IP Litigation), Arman Oruc, Paul Jin, Simone Waterbury, Ortal Ben Aharon, Charlie Stewart and Kevin Walsh (Antitrust), Amy Josselyn and Carrie Miller (Global Trade), Sarah Wicks (FDA Regulatory), Matt Wetzel and Simone Otenaike (Healthcare); Jackie Klosek (Privacy), Barry Bazian (Financial Restructuring), Brian Mukherjee (D&O Insurance), and Nathan Brodeur (Environmental).

For additional details on the acquisition, please read the press release.