Biotechnology companies Rocket Pharmaceuticals Inc (NASDAQ: RCKT) and Renovacor Inc (NYSE: RCOR) on Tuesday announced a definitive agreement under which Rocket will acquire Renovacor in an all-stock transaction for an implied value of approximately USD2.60 per share, based on the volume weighted average trading price of Rocket shares of USD15.51 for the 30 trading days through and including 19 September 2022.

The companies said their boards of directors have unanimously approved the transaction, which is currently expected to close by the first quarter of 2023.

According to the terms of the definitive agreement, Renovacor shareholders will receive approximately 0.1676 shares of Rocket in exchange for each of their shares in Renovacor and are expected to own approximately 4.6% of Rocket equity on a fully diluted basis immediately following the closing of the transaction. The companies added that the exchange ratio implies an equity deal value of approximately USD53m based on fully diluted shares outstanding and the acceleration and vesting of all earnout shares.

Gaurav Shah, MD, chief executive officer of Rocket, commented: "The acquisition of Renovacor aligns with our strategy to expand our leadership position in AAV-based gene therapy for cardiac disease and gives us a perfect opportunity to continue on our mission to transform the lives of heart failure patients through the power of gene therapy. "