Shares in British sterilisation services provider Synergy Health surged on 13 October after American medical technology firm Steris offered to buy it for about $1.9bn in cash and stock.
Synergy's stock was trading 30% higher to 1820p at 12.29BST, after surging 33% in early London trading, after Steris offered to pay Synergy shareholders £4.39 ($7.06) per share in cash, and said it will give them 0.4308 shares in a new company being incorporated to carry out the acquisition.
The per-share consideration represents a premium of 39% to Synergy's closing stock price on 10 October, the last trading day prior to the announcement and a 27% premium to the 52-week high of Synergy's stock, according to a Steris statement.
The transaction is expected to result in total annual pre-tax cost savings of $30m (£18.6m , €23.6m) or more, it added.
The deal will help New York-traded Steris expand its European footprint.
Investec Bank acted as financial advisor and DLA Piper acted as legal counsel for Synergy.
Lazard acted as financial advisor and Wachtell, Lipton, Rose & Katz and Jones Day acted as legal advisors to Steris.
Synergy and Steris senior management are to host a conference call and webcast to discuss the deal at 1330 BST on 13 October.
Steris' stock has jumped 17.43% so far this year, valuing the firm at $3.35bn.