The Swedish private equity group EQT has agreed to acquire UK-based testing industry leader Intertek Group for 9.3 billion pounds in cash.
Following months of negotiations, the Swedish private equity firm EQT has finalized the acquisition of Intertek Group (LON: ITRK) for a price of 9.3 billion pounds, equivalent to $12.36 billion, to be paid entirely in cash.
EQT announced on Thursday that Intertek shareholders accepting the takeover will receive 600 pence in cash per share, while also remaining entitled to a final dividend of 107.70 pence per share. Including this dividend, the deal values Intertek at approximately 9.5 billion pounds. This cash offer represents a premium of 38% over Intertek's closing share price of 436.3 pence on April 15, the last trading day before EQT's formal offer period commenced.
As early as May 13, Intertek indicated that its board would be likely to recommend that shareholders accept a final offer from EQT if one were made. Prior to this, Intertek had rejected three separate acquisition proposals from EQT, with the initial offer being just 515 pence per share.
Intertek's Chief Executive Officer, André Lacroix, stated, "I am confident that EQT is a partner that shares our ambitions, with both parties committed to accelerating the company's growth, enabling Intertek to fully realize its potential in the future, better serving customers and empowering all employees."
Matthias Wittkowski, Head of EQT Private Equity's Global Services sector, said, "EQT will continue to invest capital in Intertek, focusing on two key areas: technological innovation and targeted mergers and acquisitions, to support the company's further global expansion and technological advancement."
Shares of Intertek Group rose by 7.5 pence, or 1.3%, to 579.5 pence. The stock has gained 25% year-to-date.
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