Medical device company Sirtex Medical (ASX:SRX) has announced it has entered into an agreement with US medical giant Varian Medical Systems which has offered to takeover the company for $1.58 billion.
Varian Medical Systems is offering $28.00 a share in the cash takeover, a 49 per cent premium to the $18.83 price that Sirtex shares last traded at before a trading halt on Monday 29 January 2018.
The board needs approval from shareholders and says it recommends shareholders vote in favour of the takeover at a meeting to be held in May 2018.
Sirtex revealed it received a number of acquisition proposals late last year.
The Californian-based New York Stock Exchange-listed medical company is a developer of cancer products and has a market capitalisation of US$11.8 billion.
Shares in Sirtex Medical (ASX:SRX) last traded at $18.83 on Monday.