20th Dec 2024 14:14
(Alliance News) - Intelligent Ultrasound Group PLC on Thursday said it has accepted a cash takeover offer from Surgical Science Sweden AB.
Intelligent Ultrasound is a Cardiff-based ultrasound company specialising in artificial intelligence, software and simulation, while Surgical Science is a Gothenburg, Sweden-based medical simulation company.
The deal valued IU at around GBP45.2 million on a fully diluted basis, which was a premium of around 17% to IU's closing price of 11.13 pence on Wednesday.
Shares in Intelligent Ultrasound were down 0.1% at 12.57 pence each in London on Friday afternoon, giving it a market capitalisation of GBP41.1 million.
IU shareholders will be entitled to receive 13p in cash per share.
IU Non-Executive Chair Riccardo Pigliucci said: "With the sale of the Clinical AI business earlier in the year, the Intelligent Ultrasound board was faced with the task of re-focusing the Intelligent Ultrasound Group on growing its original but niche ultrasound simulation business.
"Recognising the difficulties of quickly achieving scale, combined with shareholders' strong preference for an efficient return of the majority of the proceeds from the sale of the Clinical AI business, the Intelligent Ultrasound board believes that the sale to Surgical Science allows Intelligent Ultrasound to both efficiently return capital to shareholders, as well as providing the majority of employees and broader stakeholders with the advantage of joining a considerably larger, broad-based simulation focused business that we believe will provide the scale, resources and investment to be successful and sustainable in the global simulation market."
The IU board intends to recommend unanimously that its shareholders vote in favour of the acquisition scheme at the court meeting and also at the general meeting. Notice of these meetings will be issued "as soon as practicable" within 28 days.
The takeover is expected to take effect in the first quarter of 2025.
By Emily Parsons, Alliance News reporter
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