British scientific instruments maker Spectris (SXS.L) said it would accept a 3.73 billion pound ($5.06 billion) bid from Advent if the U.S. private equity firm proceeds with a formal offer, sending its shares surging by 70% on Monday.
Spectris' stock price had tumbled in the aftermath of U.S. President Donald Trump's erratic trade policies, hitting an eight-and-half year low in early April.
"We and many investors have increasingly seen Spectris as a takeout target, especially with the group having simplified its portfolio in recent years and with it trading at a discount to U.S. peers," JP Morgan analysts said in a note.
The British company, which provides hardware, analytical and simulation software to industries such as pharmaceuticals, steel and automotive, said in late April it expected to be able to offset the direct impact of tariffs through its ability to apply surcharges.
Spectris is the largest takeover target so far this year in Britain, which has been a hunting ground for buyers in recent years because of relatively cheap valuations.
The potential takeover could deal another blow to the London stock market that has seen an exodus due to acquisitions, changes in listing venues and subdued initial public offering activity.
Advent's proposal valued Spectris, which operates across 36 countries, at 37.63 pounds per share, including dividends, about an 85% premium to Spectris' last closing price.
Shares in the London-headquartered company jumped 70% to 33.84 pounds, their highest since March 2024. Despite this rise, they have lost roughly half their value from a peak of 41.67 pounds in September 2021.
Spectris reported a drop in like-for-like sales in the first quarter in April as weak demand and economic uncertainty delayed deliveries and orders.
The proposal on Monday follows several earlier approaches from Advent, Spectris said.
Under UK takeover rules, Advent must make a formal offer by July 7 or walk away.
Spectris said its board would recommend an offer if Advent goes ahead with a formal bid.
($1 = 0.7377 pounds)
