Constellation Pharmaceuticals (NASDAQ:CNST) has climbed ~58.5% in the pre-market after announcing an agreement with MorphoSys AG (OTCPK:MPSYF) whereby MorphoSys will acquire Constellation for $34.00 per share in cash for a total equity value of ~$1.7B.

Per the terms of the agreement, which is expected to close in Q3 2021 MorphoSys will make a tender offer to acquire all of the outstanding shares of Constellation’s common stock at $34.00 per share in cash indicating a premium of ~70% to Constellation’s volume-weighted average price over the last five trading days.

After the close of the deal, MorphoSys will remain headquartered in Munich, Germany with a significant commercial and R&D presence in Boston, Massachusetts, the companies said.

In addition, MorphoSys also announced a long-term strategic funding partnership with Royalty Pharma subject to the closing of the transaction with Constellation.

Per the terms of the licensing deal, Royalty Pharma is expected to make a $1.425B upfront payment to MorphoSys with ~$150M of additional milestone payments.

Constellation Pharma with its current low prices is “a speculative bet,” Seeking Alpha contributor Avisol Capital Partners noted in a bullish thesis on the stock in January.