The top riser in London today was digital business developer, SQS Software Quality Systems (LON:SQS), which surged almost 55% higher as it agreed to be taken over by Weilchensee 884, a new German company formed by Assystem Technologies SAS.
The offer means SQS shareholders will be entitled to 825p in cash for each of their shares, valuing the firm at around £281.3mln. SQS shares closed yesterday at 527.50p, so the offer represents an impressive 57% premium. SQS shares were up 54% to 812.5p in late afternoon trading.
"The SQS boards welcome the offer and believe that it reflects an attractive valuation for SQS at a significant cash premium to the prevailing share price," said Diederik Vos, SQS chief executive.
"We believe that it is an opportunity to join up with an organisation that is complementary and which provides enhanced opportunity for the benefit of our staff and customers.
Best in class
"Combining the two companies will create a truly global business delivering a "best in class" offering to customers based on a shared culture of technical excellence, continued innovation and providing the highest standards of service."
SQS plans to unanimously recommend that the shareholders accept the offer.
Olivier Aldrin, the chief executive of Assystem Technologies, added: "The coming together of Assystem Technologies and SQS creates a dynamic, fast-growing international business with complementary outlook, strategic geographical presence and an enhanced ability to market innovative products and services."
-- Updates share price --