(Sharecast News) – Ergomed said on Monday that it has agreed to be bought by private equity firm Permira for around £703.1m.
The price represents a premium of approximately 28.3% to the closing Ergomed share price on Friday.
The biopharmaceutical services company said Permira is also offering an alternative to the cash offer. This would see eligible shareholders receive 415p in cash plus unlisted securities.
Ergomed said its board considers the terms of the cash cash offer “to be fair and reasonable” and that its directors unanimously recommend that shareholders vote in favour of the deal.
“Whilst the directors of Ergomed have full confidence that Ergomed is well positioned for future continued success and that its long-term prospects are strong as an independent listed entity, they strongly believe that the recommended offer fairly reflects the strength of the Ergomed business today and its future prospects and provides an opportunity for Ergomed shareholders to realise their investment in Ergomed, in cash, at an attractive price and a very favourable acquisition multiple,” it said.
“Furthermore, the directors of Ergomed believe that the opportunity presented for value creation through investing in its technology and its commercial infrastructure would be best captured in a private company environment.”