Bristol Myers Squibb said Sunday it will acquire drugmaker Mirati Therapeutics in a deal worth up to $5.8 billion, adding to its oncology business portfolio.

The company said it will pay $58 per share in cash. As part of the deal, Mirati stockholders will also receive one non-tradeable contingency value for each Mirati share held, potentially worth $12 per share in cash while representing an additional $1 billion of value opportunity, according to the announcement.

Bristol will pick up Mirati's portfolio drugs that target the genetic drivers of specific cancers including its lung cancer drug, Krazati, which was approved in December.

A second compound - MRTX1719 - which could be used in some types of lung cancer was also attractive to the company, Bristol executives said in an interview with Reuters.

The acquisition of Mirati, designed to boost Bristol’s oncology portfolio, was approved unanimously by both companies’ board of directors.

"With multiple targeted oncology assets including Krazati, Mirati is another important step forward in our efforts to grow our diversified oncology portfolio and further strengthen Bristol Myers Squibb’s pipeline for the latter half of the decade and beyond," Bristol Myers Squibb CFO and CEO-elect Chris Boerner said in a statement.

The companies anticipate the transaction’s completion by the first half of 2024 and is subject to fulfillment of customary closing conditions, including approval of Mirati’s stockholders and receipt of required regulatory approvals.

Bristol Myers Squibb expects to finance the acquisition with a combination of cash and debt, according to the announcement.

Reuters contributed to this report.