UK’s Instem shares pop on $257 mln take-private deal from French firm

Aug 30 (Reuters) – Shares in Instem Plc (INS.L) soared over 39% on Wednesday after the British life sciences software company agreed to a take-private deal with French private equity firm Archimed SAS for 203 million pounds ($256.5 million).

The deal will help Instem expand its reach in the healthcare IT sector and use the capital for acquisitions, the companies said in a joint statement, sending shares of the London-listed firm to a more than 16-month high of 825 pence at 0738 GMT.

Under the terms of the deal with Ichor Management, a company controlled by Archimed, each Instem shareholder will get 833 pence in cash, representing a premium of 41% to the stock’s last close.

The offer, which Instem’s board recommended shareholders accept, caps multiple rejected proposals from Archimed since March.

Earlier this month, the Staffordshire-headquartered company said it expects higher revenue growth in the second half of the year ending Dec. 31, buoyed by contract wins and renewals.

Healthcare-focused investment firm Archimed has more than 8 billion euros of assets under management and investments in 32 healthcare companies.

($1 = 0.7916 pounds)

Reporting by Prerna Bedi in Bengaluru; Editing by Sonia Cheema and Eileen Soreng

Our Standards: The Thomson Reuters Trust Principles.

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