Jounce Therapeutics, a clinical-stage firm pursuing the development of cancer immunotherapies and predictive biomarkers, announced on Monday that it will be acquired by Concentra Biosciences. Concentra will pay $1.85 in cash per share, or roughly $96.5 million, and a non-tradeable contingent value right for the company.

Prior to Concentra’s offer becoming public on March 14, Jounce’s board of directors had recommended that the company enter into an all-share merger transaction with Redx Pharma. The co-operation agreement with Redx was dated February 23. After both offers were vetted, Jounce’s directors decided that the acquisition by Concentra was in shareholders’ best interest.

Jounce will reduce the size of its workforce by roughly 84%;  In a statement posted Monday morning, Jounce said the cuts will be completed within the next month and that the company would incur restructuring costs of around $6.5 million. As part of a potential Redx merger, Jounce would have reduced the size of its workforce by roughly 57%.

According to a statement issued on Monday, Jounce’s remaining employees have been charged with completing the sale of the company, working to maximize the value of the CVR and ensuring that patients enrolled in the SELECT and INNATE trials will continue to receive therapy with vopratelimab, JTX-8064 and pimivalimab.

The Concentra acquisition is expected to close before the end of the second quarter of 2023. It is subject to Jounce maintaining at least $110 million in net cash reserved.