Permira, through its newly incorporated company Eden AcquisitionCo (Bidco), will acquire the entire share capital of Ergomed at a price of £13.5 per share in cash, for a total of £703.1m, by means of a Court-sanctioned scheme of arrangement
UK-based private equity investment firm Permira has agreed to acquire biopharmaceutical services company Ergomed for a total consideration of £703.1m.
Under the terms of the agreement, the funds advised by Permira, through a newly incorporated company Eden AcquisitionCo (Bidco), will acquire the entire share capital of Ergomed.
Ergomed shareholders would receive £13.5 per share in cash, which is around a 28% premium to Ergomed’s last closing price.
The acquisition is planned to be implemented by means of a Court-sanctioned scheme of arrangement, which is expected to be effective during Q1 2024.
Bidco holds the right to implement the acquisition by way of a takeover offer, subject to the panel’s consent and the terms of the potential cooperation agreement.
Permira partner and healthcare head Silvia Oteri said: “We are delighted to be announcing this recommended cash acquisition of Ergomed, a high-quality, medic-led and fast-growing pharma services platform.
“We look forward to partnering with the Ergomed management team in accelerating Ergomed’s growth and fulfilling its vision of becoming the leading pharmacovigilance and rare disease clinical development partner to pharma and biotech clients to safely commercialise complex and often life-saving therapies for patients.
“Miro and his team have built a very strong foundation and as we look to the next phase of Ergomed’s growth, we will continue to support commercial expansion, new capabilities and technological innovation, via investments into the business as well as transformational M&A.”
According to Permira, Ergomed is a differentiated pharma services company with expertise in the Pharmacovigilance (PV) and contract research organisation (CRO) areas.
The company is engaged in providing clinical research and trial management services through 24 offices across 100 countries and employs more than 1,800 people.
Ergomed said that its board of directors considered the offer price to be fair and reasonable, and unanimously recommended that Ergomed Shareholders vote in favour of the Scheme.
Ergomed senior independent director John Dawson said: “The acquisition also fairly reflects the exceptional quality of the Ergomed business, its people and its future prospects.
“Under the Permira Funds’ private ownership, Ergomed will be able to pursue its organic growth strategy, while benefiting from the expertise and capital to accelerate its acquisitive growth plan.
“Accordingly, following careful consideration, the Board intends to recommend unanimously that Ergomed Shareholders vote in favour of the Acquisition.”