The offer, which has been recommended by Quantum to its shareholders, will see Clinigen pay 37p in cash and 0.0405 new Clinigen shares for each Quantum share.
Based on Clinigen’s closing price of £11.11 yesterday, that values each Quantum share at 82p and the total offer at £150.3mln.
‘Sound cultural fit’
Clinigen, which began discussions over a possible takeover last month, said Quantum was a “sound cultural fit” and that the acquisition would add “immediate financial benefits”.
The company – which is worth more than £1bn – added that Quantum provides it with a European presence while its international footprint can give Quantum a global reach for its generic licensed products.
The acquisition is also expected to “enhance Clinigen’s position as the global leader in ethical access to unlicensed medicines”.
Merger set to benefit both firms
"The earnings enhancing acquisition of Quantum is an excellent operational and geographical, as well as cultural, fit with Clinigen,” said Clinigen chief executive Shaun Chilton.
“Quantum's UL2L (unlicensed to licensed) capabilities will provide a bridge between our unlicensed and commercial businesses, mirroring our business in the AAA region. Quantum's expertise in this area will enable us to boost our global UL2L ambitions.
"With the addition of Quantum, we will be in a stronger position to drive our global expansion in the unlicensed and commercial medicine markets."
Quantum boss Chris Rigg added: "The Quantum board is excited by the prospects of the enlarged group and Quantum's role in it."
The acquisition is being funded from existing banking facilities.
Clinigen said it has received irrevocable undertakings – investors who have agreed to sell their shares – from Quantum shareholders representing 19% of the share capital.