Archimed takes over software firm Instem for £203m

Health tech software company Instem has agreed to a £203m takeover by a US private equity firm in the latest blow to London’s capital markets.

The life science solutions provider announced this morning it had agreed to a takeover deal by Archimed, a US-based firm that operates in the health sector. Archimed has established a new company, Bidco, to acquire the group.

Under the terms of the deal, the shareholders of the AIM-listed firm are set to receive 833p per share.

“[Instem is] well positioned to capitalise on the growing R&D market due to its high-quality product portfolio and development potential,” said the deal recommendation.

“Bidco is fully aligned with Instem management team’s vision for Instem to achieve its organic and inorganic growth ambitions.”

The offer has been approved by the board but remains subject to shareholder approval and a number of regulatory checks. A spokesperson confirmed that should the deal go through, the firm would be delisted from the AIM exchange.

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The agreement comes at a time when the London markets continue to struggle to attract and retain tech listings. Cambridge semiconductor designer Arm, once listed on the London Stock Exchange prior to a 2016 acquisition by SoftBank, is gearing up for a major IPO in New York that could be worth as much $70bn.

Meanwhile, data from EY has shown that London IPO activity remains subdued with an underwhelming first half of 2023 and little sign of bucking the downward trend of last year.

In August, the chief executive of the London-listed trading app Plus500 criticised the UK public investment scene. David Zruia said that greater valuations, favourable market conditions and attitudes toward tech firms in New York made it a more attractive option.

Source:  UKTN

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