Early trading saw shares of the London-listed Ergomed surge up to 28% to an eight-month high of 1,342 pence. The 1,350 pence cash offer per share represents a premium of nearly 28% over Ergomed's most recent closing price.
Permira, a British private equity firm has signed a deal to acquire Ergomed (ERGO.L), a British biopharmaceutical services company, for approximately 703.1 million pounds ($886.40 million).
Early trading saw shares of Ergomed, which is listed on the London Stock Exchange, surge as much as 28% to an eight-month high of 1,342 pence.
The transaction follows EQT's £4.5 billion acquisition of vet medicines giant Dechra, one of the biggest in Europe so far this year. The board of Ergomed believed that the terms of the cash offer were fair and acceptable after consulting with Jefferies and Numis.
European M&A reached $305.9 billion (about $940 per person in the US) in the first seven months of 2023, a 51% decrease from the same period in 2018, marking the lowest amount since 2002. According to data from LSEG, the global healthcare sector has been a bright spot, making up 16% of all global M&A.
'œPrivate ownership by funds advised by Permira, a highly-experienced healthcare investor with a track record of building successful UK-based, global businesses, will allow us to build on the foundations we have created," said Miroslav ReljanoviÄ‡, chairman, Ergomed.
Permira concentrates its investments in the fields of technology, consumer goods, healthcare, and services. In addition to the cash offer, it also provides an alternative in which qualified shareholders of the London-listed firm would receive 451 pence in cash plus unlisted securities. The board of Ergomed is not recommending anything to shareholders regarding the alternate offer.
Permira recently finalised the $5.8 billion acquisition of Mimecast and the $14 billion+ acquisition of McAfee as P2P transactions. Here, Permira was a member of a group of investors that included Advent, Crosspoint Capital, CPP Investments, GIC, and ADIA.
Earlier, Permira invested in AltamarCAM, a leading private markets solutions provider. The company that acquired minority stakes in businesses with strong development potential will buy a 40% stake from a combination of existing managing partners and outside finance partners.
Moreover, Permira also acquired a majority stake in Gruppo Florence, leading Italian integrated industrial platform. Gruppo Florence is securing its position as a leader in both products and services with the help of the Permira funding.
Ergomed, a company based in Surrey, was founded in 1997, offers clinical research and trial management services, employs over 1,800 employees, and conducts business from 24 offices spread throughout almost 100 nations. The EU GMO frameworks were created by the company in order to address environmental issues with GMOs used in agriculture.
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