Ironwood Pharmaceuticals, a GI-focused healthcare company, has acquired VectivBio Holding AG, a clinical-stage biopharmaceutical company focused on treatments for gastrointestinal conditions, for $17 per share in an all-cash transaction with an estimated aggregate consideration of approximately $1 billion.

Headquartered in Basel, Switzerland, VectivBio is focused on the discovery and development of treatments for severe, rare conditions, including short bowl syndrome with intestinal failure (SBS-IF) and acute graft versus host disease (aGvHD). The deal looks to strengthen Ironwood’s portfolio and pipeline to drive the treatment of GI diseases.

“Ironwood’s capabilities and established track record in GI make it the ideal company to bring apraglutide, if approved, to patients suffering from SBS-IF and other serious GI conditions,” says Luca Santarelli, chief executive officer and founder of VectivBio.

Citi, J.P. Morgan Securities LLC, RBC Capital Markets LLC, and Wells Fargo Securities LLC are serving as financial advisors to Ironwood on the transaction. Financing for the transaction has been provided by Citibank N.A., Citizens Bank N.A., JPMorgan Chase Bank N.A., Royal Bank of Canada, and Wells Fargo Bank. Latham and Watkins LLP and Advestra AG are serving as legal advisors to Ironwood. Centerview Partners LLC and BofA Securities Inc. are serving as financial advisors to VectivBio, and Cooley LLP and Homburger AG are serving as legal advisors to VectivBio.