(Alliance News) - Medica Group PLC shares surged on Monday, after it said it has reached an agreement with Moonlight Bidco, a wholly-owned subsidiary of private equity firm IK Investment Partners, on a takeover.
Medica is a Hastings, England-based company which provides services such as x-ray and MRI scan analysis to hospitals.
Moonlight will acquire the telemedicine services provider for 212 pence per share in cash. The deal values all of Medica at GBP269 million.
The price represents a 33% premium to the shares closing price of 160.0 pence on Friday, being the last business day before the announcement.
It shares surged 33% to 212.00 pence each in London on Monday morning.
Medica said that it thinks the terms of the acquisition reflects "the strength of Medica's business, team and its prospects." The directors also think the terms are "fair and reasonable" and encourage shareholders to vote for the takeover at its general meeting.
"Since its inception in 1989, IK Partners has initiated, structured, and financed over 170 private equity transactions across Europe, completed over 400 add-on acquisitions, and raised around EUR14 billion of capital," Medica said.
IK considers Media to be a "high-quality business that is a leader in the global teleradiology and wider imaging diagnostics sector, playing an important role in providing high-quality diagnostic information and reports for its customers."
Chair Roy Davis said: "The board of Medica believes that the offer from Bidco represents an attractive and certain value in cash today for Medica shareholders which reflects our reputation as a leading, high-quality teleradiology and wider telemedicine provider with a compelling service offering. The board of Medica believes that IK Partners is a strong and credible partner for the business and is well positioned to support its next phase of development, including accelerating investment in the company which will benefit our customers and their patients going forward."
By Sophie Rose, Alliance News reporter
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