(Sharecast News) - Cello Health said on Wednesday it had agreed to a takeover from private venture company Arsenal Capital Partners, valuing the company at £179m.
Cello shareholders would get 161p in cash per share, representing a premium of about 43.8% to the closing price per share on 30 June.
It said the acquisition valued the entire issued and to-be-issued share capital of Cello at around £178.8m.
The directors of Cello said they intended to recommend the deal to shareholders. Arsenal Capital said it had received undertakings for around 35.2% of the stock.
Cello chairman Chris Jones the deal strengthened the firm's ability to achieve its ambition to be a "truly global" company.
"Cello has expanded rapidly since it was founded in 2004, both through internal and acquisition-led growth, and is now a thriving healthcare advisory group," he said.
"The all-cash offer ... represents an excellent opportunity for current shareholders to realise value for their investment at an attractive premium and valuation multiple."
At 1207 BST, shares in Cello Health were up 43.71% at 160.95p.
16 Sep 2015 10:06
Cello shares off key as pre-tax profits halved
(ShareCast News) - Shares in healthcare marketing company Cello Group plunged as interim pre-tax profits halved on the back of an ongoing tax dispute with the UK government and an expansion of its US activities. Pre-tax profits at the media advisory firm slumped to £1.7m in the six months to 30 June
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