Private equity giant Advent International is one step closer to sealing its largest UK deal this year after Spectris, the British precision instrumentation and software company, said it would back a formal £3.73bn ($5.06bn) offer – if Advent proceeds, according to a report by Reuters.
Shares in Spectris surged 70% on the news, marking their highest level in over a year.
The proposed deal, which would value Spectris at £37.63 per share including dividends – an 85% premium to its last close – follows several prior approaches from Advent. Under UK takeover rules, Advent now has until 7 July to submit a binding offer or walk away.
Spectris, which operates in 36 countries and serves sectors including pharmaceuticals, automotive, and steel, has become increasingly attractive to suitors. Analysts at JP Morgan noted that the company’s recent portfolio simplification and valuation discount to US peers had made it a likely takeover target.
The company’s shares, although sharply higher on the news, are still well below their September 2021 peak of £41.67, reflecting broader market pressures. Spectris reported declining like-for-like sales in Q1 due to weaker demand and macroeconomic uncertainty impacting order flow and delivery timelines.
If successful, Advent’s acquisition would represent the largest UK public market buyout so far in 2025.
