(Alliance News) - Yourgene Health PLC on Monday said it has agreed to a cash takeover offer from Novacyt SA that values Yourgene about GBP17 million.
Yourgene Health is a Manchester, England-based molecular diagnostics group. Novacyt SA is a Surrey, England-based biotechnology group focused on clinical diagnostics. Both companies are listed on AIM in London.
Yourgene and Novacyt said they have reached agreement on an offer for Yourgene from Novacyt UK Holdings Ltd, a wholly-owned subsidiary of Novacyt, at 0.522 pence per share in cash. The deal values Yourgene's equity at GBP16.7 million.
Yourgene shares more than doubled in response to 0.47p on Monday morning. The stock remains down 93% over the past 12 months, however. It traded above 6p a year ago.
Novacyt shares were up 26% to 47.95p on Monday, though also remain down - by 71% - on a year before.
The companies said the acquisition "strongly aligns" with Novacyt's post-Covid strategy, which included pursuing strategic mergers and acquisitions to support its long-term growth and prioritised the twin objectives of geographic expansion and portfolio development.
Additionally, Novacyt said it believes that Yourgene "will reach its full potential" following the acquisition, with the increased investment accelerating revenue growth and increasing the enlarged group's long-term value.
"The prospect and scale of what the new enlarged group could bring to our customers, employees and other stakeholders is exciting given the complimentary fit of both businesses," said Yourgene Chief Executive Officer Lyn Rees. "Whilst the two companies work within the same molecular diagnostic space, they both bring distinctive strengths and are focused in different market segments, which opens up further opportunities for growth."
Yourgene and Novacyt expect to complete the acquisition during the third quarter of 2023.
By Emma Curzon, Alliance News reporter
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