The takeover offer stands at $1.9bn, equivalent to £1.2bn, in both cash and stock: Synergy shareholders have been offered 439 pence per share in cash and 0.4308 shares in the new company for each share held, valuing the company at £19.50 per share, which is a 39% premium to the stock’s close at the end of last week and a 27% premium on the highest closing price of £15.30 per Synergy share over the 52-week period.

While Synergy released another positive trading update that showed positive progress with the implementation of its strategy, one of the main advantages of the combination for Steris would be the savings on tax: the two companies plan to set up a new company in the UK, ‘New STERIS’, which would mean Steris shifting its domicile from the US, and in turn cutting its tax bill, although it is expected to list on the New York Stock Exchange. The move is expected to save both companies around $30m a year.

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