Novacyt SA (AIM:NCYT, OTC:NVYTF, EPA:ALNOV) is swooping to buy Yourgene Health PLC in a deal that values the latter at £16.7mln, or a 168% premium to Friday's closing price.
Unsurprisingly, Yourgene shares shot up 143% to close to the offer price, while Novacyte's stock jumped 49%.
The deal is designed to increase Novacyte's product base and geographic footprint. Already, 26% of the shareholder base has given its backing for the deal.
In a statement, Lyn Rees, CEO of Yourgene, said: "The prospect and scale of what the new enlarged group could bring to our customers, employees and other stakeholders are exciting given the complementary fit of both businesses.
"Whilst the two companies work within the same molecular diagnostic space, they both bring distinctive strengths and are focused in different market segments, which opens up further opportunities for growth."
At 9.30am, Yourgene shares were changing hands for 0.47p, up 0.28p, while Novacyte stock jumped 0.971p 48.97p.