The share price of the UK-based Ergomed PLC (GB:ERGO) surged by 14.8% today after the PE firm Permira announced the takeover and privatization of the company. Permira agreed to acquire Ergomed for £703 million in a cash offer of £13.5 per share, reflecting a premium of 28% over Friday’s closing price. Year-to-date, the Ergomed share price has experienced a loss of 21.2%.
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Ergomed provides specialized services like clinical research planning, monitoring, drug safety, etc., to pharmaceutical companies in around 100 countries. It will further enhance Permira’s portfolio of other medical service companies.
More About the Deal
UK-based Permira Advisors specializes in buyouts and supports thriving companies with aspirations for growth. With this acquisition, Permira is set to offer Ergomed the backing required for its upcoming growth phase, which will encompass investments in the expansion of commercial operations and technological advancements. Furthermore, Permira will supply additional capital to facilitate transformative mergers and acquisitions.
The company also has another offer at hand from Permira, which will allow shareholders to receive 415p in cash along with the shares in the unlisted company. However, the board of Ergomed described the cash offer as “fair and reasonable” and recommended shareholders to vote in favor of it.
The company also believes the deal provides Ergomed’s shareholders with a chance to convert their investment into cash at an appealing price and a highly favorable acquisition ratio.
Ergomed Share Price Forecast
On TipRanks, ERGO stock has received a Moderate Buy rating backed by one Buy recommendation from the Berenberg Bank. The Ergomed share price target is 1,450p, which is 38% higher than the current price.
