Private equity group Clayton, Dubilier & Rice had made an offer to acquire healthcare communications business Huntsworth for £400 million ($511 million).

CD&R has offered 108p in cash per share for the UK-listed business, representing a 50% premium to its closing price of 72p on 2 March. The cash consideration will be financed with a combination of equity from CD&R’s tenth fund and debt, provided by Royal Bank of Canada, under a $295 million term loan facility and revolving credit facility of £35 million ($45 million).

The deal, which has been recommended by Huntsworth’s directors, give the company an enterprise value of £524 million ($670 million).

“We believe Huntsworth represents a strong platform with a highly skilled workforce and a broad and differentiated digitally-driven offering to support its customers’ growing demand,” said Liam Fitzgerald, adviser to CD&R funds. “Our vision for Huntsworth is shared with management, who have demonstrated an ability to drive organic growth and execute accretive add-on acquisitions.”