British medical software company Instem has agreed upon a cash acquisition deal of £203 million from a French private equity firm.

Announcing the news in a joint statement, the terms of the deal struck with Ichor Management, which is controlled by funds managed by French private equity firm Archimed, will see Instem shareholders get 833p in cash, representative of a premium of 41 per cent to the stock's last close.

Bidco, Ichor’s board of directors, said it believes Instem can leverage Archimed’s “deep industry knowledge” and network as a healthcare specialist investor to accelerate Instem’s growth strategy and support Instem’s management team in expanding its product offering and continuing to transition customers from on-premise to SaaS.

“The Instem Board is pleased with the considerable progress made by the Company following the successful integration of acquisitions and the implementation of its strategy to achieve and maintain a growing portfolio of ‘world leading life science workflow and data solutions,” said Instem chair David Gare. “While this strategy, endorsed by the Board, is anticipated to generate substantial long-term value for shareholders, we also note that the next phase of development for the business is at an early stage and there is an element of risk attached to some of our recent initiatives, which will take time to deliver value.”

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