£18.1 mln sale of Synexus
Bosses of north west clinical research business Synexus have agreed to sell the company to a private equity outfit for £18.1 million.
Lyceum Capital, based in London, has offered 78p a share for the AIM-listed firm via Sigma Acquisitions, a vehicle it has created for the takeover. Synexus recruits patients for trials of drugs to treat cancer, obesity, diabetes, arthritis and other conditions. The company, which listed in November, 2005, at 65p a share, is based in Chorley and has centers in Manchester and Wigan. It operates from 13 sites in six countries, following a string of acquisitions, and employs more than 150 people.
Led by CEO Michael Fort, Synexus pursued a buy-and-build strategy after it floated, with swoops in Hungary, Poland and South Africa, and its shares soared to a high of 104.5p earlier this year. However, it issued a profits warning in January, following delays to the start of several studies, and the shares slumped to 30p in September. Despite a rise in turnover from £9.5 million to £10.3 million in the year to March 31, profits tumbled from £1.2 million to £400,000.
Lyceum said it would provide funding for the acquisitions programme to resume and added that Sigma has received acceptances from investors holding 54.18% of the shares. The offer price represents a premium of 53% to the price of 51p a share on October 18, the day before Synexus announced it had received an approach. Yesterday shares surged 21%, or 13p, to 74.5p. Jeremy Hand, managing partner of Lyceum Capital, said: “Synexus is a great business. It operates in a growth market with a differentiated offering and has the potential to achieve significant and rapid expansion.”
Fort said: “This deal allows Synexus to complete its international roll-out plans and provide our customers with a truly competitive offering.” More than 32,000 patients visited Synexus clinics last year in trials for clients such as AstraZeneca, Novartis, Pfizer and Bayer. (manchestereveningnews)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.