Intrexon Corp. agreed to acquire GenVec Inc. in an all-stock transaction.

GenVec shareholders will receive 0.297 of an Intrexon common share for each GenVec common share. They will also receive a right to contingent consideration equal to 50% of any milestone or royalty payments received within 36 months of the close of the deal under GenVec's research collaboration and license agreement with Novartis AG.

The exchange ratio represents $7.00 per share of GenVec's common stock based on Intrexon's five-day volume weighted average price as of Jan. 23.

The deal is expected to close in the second quarter of 2017, subject to customary closing conditions, including GenVec stockholder approval.

Intrexon plans to integrate and expand upon GenVec's expertise in adenoviral vectors and cGMP drug product manufacturing with the intention of enhancing its gene transfer capabilities that encompass multiple viral and nonviral platforms.

Roth Capital Partners provided advisory services to the board of GenVec, and Hogan Lovells is serving as legal counsel to GenVec. Thompson Hine is serving as legal counsel to Intrexon.