Swedish Orphan Biovitrum AB has agreed to buy bio-pharmaceutical company CTI BioPharma Corp. in a deal valued at $1.7 billion.

Sobi will acquire all the outstanding stock of CTI for $9.10 per share, the Stockholm-based company said a statement. The offer equals a premium of 88.8% from the last closing price.

The deal is expected to accelerate Sobi’s revenue growth and to improve margins by adding a commercial-stage asset in the US. CTI is primarily focused on blood related cancers and rare diseases.

“The acquisition of CTI is the latest in a series of transformative transactions Sobi has conducted to build its leading rare haematology franchise,” Sobi Chief Executive Officer Guido Oelkers said.

The transaction will be funded with debt financing from Bank of America Corp. and Danske Bank A/S. Sobi said that as much as half of the purchase consideration will be refinanced through an issuance of new ordinary shares of Sobi after the closing of the acquisition.

Sobi’s main shareholder Investor AB — controlled by the powerful Wallenberg family — has agreed to subscribe for its pro-rata share of the rights issue, corresponding to about 34.7% of the shares to be issued.

CTI board unanimously approved the transaction and recommended that the shareholders tender their shares.

Read More: Sobi to Buy CTI BioPharma for $9.10/Share in Cash: M&A Snapshot