ScS Group PLC (AIM:SCS) has agreed a £99.4 million bid approach from Poltronesofà SpA, the Italian furniture retailer.
The offer values each ScS share at 280p, consisting of 270p per share cash and a 10p final dividend.
Alan Smith, non-executive chair of ScS, said: “This cash offer, which the ScS board unanimously recommends, comes at an attractive valuation.”
“It recognises the quality of the ScS Group's operations, its cash resources, and the progress accomplished under Steve Carson's leadership via his refreshed strategy.”
Poltronesofà has 167 stores in Italy, 106 stores in France and 27 further stores across Europe (15 in Belgium, nine in Switzerland, two in Cyprus and one in Malta).
It said the deal follows a decision to continue its geographic growth and enter the UK sofa market.