Shares of Instem, a UK-based company, surge following a $257 million take-private agreement by a French firm.

30 Aug, 2023

Shares of Instem, a UK-based company, surge following a $257 million take-private agreement by a French firm.

Instem Plc witnessed a remarkable surge of over 39 percent in its shares on Wednesday. This surge followed the British life sciences software company's agreement to a take-private arrangement with Archimed SAS, a French private equity firm, for a substantial sum of £203 million ($256.5 million).

In a joint statement, the companies highlighted that this deal would serve as a catalyst for Instem's expansion within the healthcare IT sector, leveraging the secured capital for potential acquisitions. This development propelled the share value of the London-listed firm to reach a peak not seen in over 16 months, soaring to 825 pence at 0738 GMT.

Ichor Management, a company under the control of Archimed, is set to implement the terms of the deal. This entails each shareholder of Instem receiving 833 pence in cash—an attractive offer that reflects a premium of 41 percent compared to the stock's most recent closing price.

Instem's board, having dealt with several rejected proposals from Archimed since March, recommended that shareholders embrace this enticing offer. This step culminated after persistent discussions and negotiations.

Notably, Instem's outlook for the remainder of the fiscal year is optimistic. The company, headquartered in Staffordshire, anticipates substantial revenue growth in the second half of the year concluding on December 31. This buoyant outlook is underpinned by a series of successful contract wins and renewals.

Archimed, known for its focus on healthcare investments, manages a substantial portfolio totaling more than 8 billion euros, with investments spread across 32 healthcare companies.