As first reported in the UK’s Guardian, Instem, a Staffordshire-based company that provides IT services used in drug development for the global life sciences market, has been acquired by French healthcare-focused private equity group Archimed SAS for £203m in a takeover deal.
This deal marks the second British life sciences company this week to be taken private by a foreign buyer, as foreign investors target the UK for cheap takeover deals. The deal offers shareholders 833p per share, which is 41% higher than Instem’s closing share price on Tuesday.
Instem, which employs around 500 staff and has an office in the US and a presence in markets including China, India, Japan, and Switzerland, floated on the AIM market in 2010 at a share price of 204p.
Having reached a high of almost 900p late last year, the company was acquired by Archimed SAS in a £203m deal.
According to David Gare, the chair of Instem, the offer from Archimed SAS represents an attractive valuation and offers shareholders the certainty of cash today, while also fairly reflecting the exceptional quality of the Instem business, its people, and its future prospects.
Under Archimed SAS’s private ownership, without the costs and regulation of a listed company, Instem will be able to pursue its organic growth strategy while benefiting from the expertise and capital to accelerate its successful acquisitive growth plan.
Instem is a provider of information technology (IT) solutions to the global life sciences market, and the acquisition by Archimed SAS will help the company accelerate its growth plans. The deal is expected to benefit Instem’s organic growth strategy and provide the company with the necessary capital to expand its operations.
Foreign investors are increasingly targeting the UK for cheap takeover deals, and Instem is the second British life sciences business in as many days to be taken private by a foreign buyer. Cambridge-based Abcam was the first company to be taken private, accepting a $5.7bn offer from the US tech conglomerate Danaher. Abcam is a global supplier of antibodies and other materials to about 750,000 researchers in the life sciences drug discovery and diagnostics sector.
The acquisition of Instem by Archimed SAS is expected to help the company pursue its growth plans, expand its operations, and benefit from the expertise and capital of its new owner. The deal is expected to provide Instem with the necessary resources to accelerate its successful acquisitive growth plan and pursue its organic growth strategy.
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