Evotec makes offer to acquire Cyprotex

German biotech firm Evotec (EVT: Xetra) has made an offer to acquire UK-based Cyprotex (AIM: CRX-GB), a specialist pre-clinical contract research organization in ADME-Tox and DMPK.

Cyprotex serves the industry's increasing requirement for earlier drug screening, regulatory requirements and reducing the reliance on animal testing.

The proposed acquisition, which has been unanimously recommended by the board of Cyprotex, is expected to close before year-end 2016. Evotec will pay approximately £55.36 million ($67.8 million) in cash for the acquisition of all 26.1 million issued and to be issued Cyprotex shares and the funding of all existing company debt. The offer of £1.60 per Cyprotex share reflects a 9.4% premium to the VWAP of the past 30 trading days at AIM. The offer is intended to be implemented by a scheme of arrangement regulated by the UK takeover code, with already >50% shares secured irrevocable.