A takeover deal worth £703 million has been agreed upon which will be see Permira Advisers subsidiary Bidco to acquire the Guildford based Ergomed.

Ergomed operates in structurally growing markets, benefitting from tailwinds of “increasing complexity, regulatory requirements and outsourcing rates”.

In a statement Permira spoke about the acquisition: “Ergomed is better able to achieve its long-term growth potential as a private company than as a public company”.

Permira is well positioned to support Ergomed’s next phase of growth by investing into the commercial expansion and technological transformation of the business as well as providing, where needed, additional capital to undertake transformational M&A.”

They added: “Permira has a strong track record in the Healthcare sector deploying capital and expertise into growth-orientated businesses and supporting their management teams in achieving their strategic ambitions.”

Rothschild & Co is the financial adviser to Bidco and Permira, while Jefferies is the joint adviser to Ergomed alongside Numis, which in turn is also joint broker alongside Peel Hunt.

Jefferies and Numis have advised Ergomed on the financial terms of the offer including having them consider the terms with each scheme shareholder entitled to receive 1,350 pence in cash for each Ergomed share.

Silvia Oteri, partner and head of healthcare at Permira, said: “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.”

John Dawson, senior independent director of Ergomed, added: “The Ergomed board is pleased to have had a proven track record of consistently delivering on its growth strategy through organic growth, geographical expansion and an effective acquisition strategy.

While this strategy is anticipated to generate substantial long-term value for shareholders, we also note that the next phase of growth will require investment into the commercial expansion and technological transformation of the business as well as additional capital to undertake transformational M&A.”

He added: “The offer from the Permira Funds, which follows multiple rounds of negotiations and extensive discussions on valuation, represents a highly attractive valuation and offers shareholders the certainty of cash today.”