Instem shares surge on £203m takeover offer

Shares in Instem soared 40% on Wednesday morning after the life sciences software company received a £203m takeover offer from healthcare-focused investment firm ARCHIMED.

The offer, at 833p per share, represents a 41% premium to Tuesday's closing price of 590p and a 35% premium to the average share price over the past three months.

The Instem board unanimously recommends shareholders to vote in favour of the offer.

"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," said Instem chair David Gare.

ARCHIMED, which has more than €8bn of assets under management, has past and current investment in 32 healthcare companies.

Gare said: "Under Bidco'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."

By 0906 in London, the stock was up. 39.9% at 825.1p.