Royalty Pharma (RPRX) said Friday it has agreed to acquire its external manager, RP Management for about $1.1 billion, including 24.5 million in shares that will vest over five to nine years, about $100 million in cash, and the assumption of $380 million of debt.

The transaction is meant to simplify its corporate structure and reduce costs, generating anticipated cash savings of more than $100 million in 2026 and $175 million in 2030, the company said.

The transaction is expected to close in H1, the company said.

The company said it also approved a new $3 billion share repurchase program, including $2 billion in shares it expects to buy back in 2025.

The repurchase program replaces the unused $465 million of the company's $1.0 billion share repurchase program launched in 2023, the company said.