Not another one? Tech firm set to be plucked from London’s markets in £203m deal
Another tech firm looks set to be snatched from London’s markets after bosses at Instem struck a £203m take-private deal with a US healthcare investor today.
Instem, an AIM-listed life sciences software specialist, said this morning that it had agreed on the terms of a 833p per share cash offer and would now recommend the deal to shareholders.
US headquartered has set up a new company called Ichor to buy the group and said it is looking to leverage Instem’s “deep industry knowledge and network” to accelerate its growth strategy.
The investment outfit describes itself as “joining forces with scientists, healthcare professionals, entrepreneurs, and investors to positively impact companies operating in those fields”.
The deal may unsettle some in the City after a slew of deals plucking firms from London’s markets over the past 18 months.
London-firms remain cheap by global standards as a weak pound and the lingering impact of Brexit weigh on valuations. A wave of take-private deals in London has failed to materialise at the pace some feared this year, however.
In a statement this morning, David Gare, chair of Instem, said the deal would allow the firm to channel cash into growth without triggering fears over mounting losses.
“The offer from Bidco represents an attractive valuation and offers shareholders the certainty of cash today, while also fairly reflecting the exceptional quality of the Instem business, its people and its future prospects,” Gare added.
“Under [Ichor’s] private ownership, without the costs and regulation of a listed company, Instem will be able to pursue its organic growth strategy, while benefiting from the expertise and capital to accelerate its successful acquisitive growth plan.”
Ichor’s swoop on Instem comes just days after US-listed British firm Abcam agreed to a $5.7bn offer from the US tech firm Danaher.