(Alliance News) - Ergomed PLC on Monday hailed Permira Advisers LLP's "strong" track record in the healthcare sector, as it agreed on a takeover offer with the healthcare-focused UK private equity firm.
Permira Advisers aims to identify growth themes for its portfolios which focus on technology, consumer companies, healthcare and services, in particular digital.
The offer for Ergomed, a pharmaceutical services company is 1,350 pence per share, 28% higher than Friday's closing price of 1,052p, and values it at GBP703.1 million.
Ergomed shares jumped 26% to 1,330.25p each on Monday morning in London.
Ergomed's directors deem the offer to be "fair and reasonable", having been advised by Jefferies and Numis.
Ergomed Senior Independent Director John Dawson said: "While this strategy is anticipated to generate substantial long-term value for shareholders, we also note that the next phase of growth will require investment into the commercial expansion and technological transformation of the business as well as additional capital to undertake transformational mergers & acquisitions".
Ergomed Executive Chair Miroslav Reljanovic said: "Private 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. It also brings with it opportunities to access their operational expertise, global network and capital."
Ergomed directors recommend that shareholders vote in favour of the offer at forthcoming court and general meetings.
If all conditions pass, Ergomed expects the takeover to become effective in the first quarter of 2024.
"Permira believes Ergomed is a differentiated platform in the outsourced pharma services sector with a strong track record in the pharmacovigilance and contract research organisation spaces," Ergomed said.
Ergomed hailed Permira's "strong track record in the healthcare sector" and their drive for strategic ambitions, among deep industry-specific knowledge.
Ergomed said that so far the takeover offer has received support from its chair & founder Reljanovic, representing 18% of the existing issued share capital of Ergomed, as well as support from Amanti Global Investors Ltd, bringing total support so far to 20% of issued share capital.
By Tom Budszus, Alliance News reporter
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