Shares in Synergy Healthcare (LSE: SYR) soared by more than 30% today, following an announcement from the Britishsterilisation services providers boardthatthey have reached agreement of the terms of a recommended combination of Synergy and Steris (NYSE: STE.US), theUS medical technology company.
The takeover offer stands at $1.9bn, equivalent to 1.2bn, in both cash and stock: Synergy shareholders have been offered439 pence per share in cash and 0.4308 shares in the new company for each share held, valuing the companyat 19.50 per share, which is a 39% premium to the stocks close at the end of last week and a 27% premium on thehighest closing price of 15.30 per Synergy share over the 52-week period.
While Synergy released another positive trading update that showedpositive progress with the implementation of its strategy, one of the main advantages of the combination for Steris would be the savings on tax: the two companies plan to set up a new company in the UK, New STERIS, which would mean Steris shifting its domicile from the US, and in turn cutting its tax bill, although it is expected to list on the New York Stock Exchange. The move is expected to save both companies around $30m a year.
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Sam Robson has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.