U.S. medical device maker Boston Scientific Corp (NYSE:BSX) has agreed to buy British pharmaceutical firm BTG PLC (LON:BTG) for £3.3bn as part of a move to expand in the field of cancer-fighting medical devices.
The offer of 840p in cash per share represents a premium of 37% to BTG’s closing share price of 615 pence on Monday.
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The news sent BTG shares soaring - they were 34% up at 824.25p in mid-morning trade.
BTG said on Tuesday it plans to recommend the deal to its shareholders as it considers the terms to be fair and reasonable.
BTG makes medical technology devices for physicians in the field of cancer as well as medicines and antidotes against snake venom for emergency care.
"The acquisition of BTG and its rapidly growing peripheral interventional portfolio is an exciting extension of our category leadership strategy that will augment our capabilities in important areas of unmet need such as cancer and pulmonary embolism,” Boston’s CEO Michael F. Mahoney said in a statement.
“We are confident that the addition of these therapies to our portfolio will ultimately advance patient care in ways that could not be realised by either company alone, while also allowing us to realise substantial synergies and provide a strong return for investors,” he added.