UK's Instem shares pop on $257 mln take-private deal from French firm (updated)
30/08/2023 08:55
(Updates share movement in paragraph 2, details on deal
throughout)
Aug 30 (Reuters) - Shares in Instem Plc INS.L soared
over 39% on Wednesday after the British life sciences software
company agreed to a take-private deal with French private equity
firm Archimed SAS for 203 million pounds ($256.5 million).
The deal will help Instem expand its reach in the healthcare
IT sector and use the capital for acquisitions, the companies
said in a joint statement, sending shares of the London-listed
firm to a more than 16-month high of 825 pence at 0738 GMT.
Under the terms of the deal with Ichor Management, a company
controlled by Archimed, each Instem shareholder will get 833
pence in cash, representing a premium of 41% to the stock's last
close.
The offer, which Instem's board recommended shareholders
accept, caps multiple rejected proposals from Archimed since
March.
Earlier this month, the Staffordshire-headquartered
company said it expects higher revenue growth in the second half
of the year ending Dec. 31, buoyed by contract wins and
renewals.
Healthcare-focused investment firm Archimed has more than 8
billion euros of assets under management and investments in 32
healthcare companies.
($1 = 0.7916 pounds)
(Reporting by Prerna Bedi in Bengaluru; Editing by Sonia Cheema
and Eileen Soreng)
((Prerna.Bedi@thomsonreuters.com; +91 98052 24616;))