Chelmsford-based sensor maker e2v agrees £619.6m takeover offer from US group Teledyne Technologies

Steve Blair, chief executive, and Neil Johnson, chairman, of e2v.

Steve Blair, chief executive, and Neil Johnson, chairman, of e2v. - Credit: Archant

Shares in imaging sensor maker e2v surged today the Essex-based firm recommended investors to accept a £619.6m takeover approach from United States group Teledyne Technologies

The all-cash offer worth 275p per share represents a premium of 48% on last Friday’s close, with the price at lunchtime today standing at 272.81p, an increase on the day of 87.31p.

The executive boards of both companies have agreed to the deal. with e2v now urging shareholders to vote in favour of the acquisition.

e2v chairman Neil Johnson said: “Teledyne has recognised the value inherent in our business and prospects by making a cash offer at an attractive premium to the share price.

“The board of e2v has also considered the merits of being part of a larger, complementary group with enhanced scale and a wider range of capabilities to service its key customers and management and employees having access to the opportunities available in a larger group.”

Cantor Fitzgerald previously had a “buy” recommendation on e2v’s stock, “based on a growing pipeline of opportunities, particularly in professional imaging, radiotherapy and the space exploration markets.”

William Game, a general industrials research analyst at Cantor Fitzgerald, said: “Teledyne’s board believes that there is a highly complementary fit between the two businesses and this should enable both companies to accelerate revenue growth across a range of multiple industrial markets.”

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e2v is the latest UK firm to be bought by an American company following the significant drop in sterling since the EU referendum.

The pound has fallen by more than 16% against the US dollar since the Brexit vote, providing would-be American buyers with a potential discount through British acquisitions.