Shares in the medical software company A.L.I. Technologies (TSX:ALT)surged by a third in heavy trading Thursday after U.S.-based McKesson Corp. announced a friendly, all-cash offer to buy the company for $530 million.
A.L.I. stock gained $10.64 to $43.14. The McKesson offer is for $43.50 a share. A.L.I.'s board has recommended shareholders accept the offer.
McKesson, a San Francisco-base drug wholesaler, says it will incorporate A.L.I.'s digital image network systems for the medical field into its own clinical offerings.
"By joining forces with the leading provider of clinical information systems, we see a tremendous opportunity to extend our reach and take advantage of the enormous market that exists for next-generation, enterprise-wide image management solutions," A.L.I. chief executive Greg Peet said.
Peet and all of A.L.I.'s management and staff will keep their jobs and remain based in Vancouver.
"We are committed to providing clinicians with 'anytime, anywhere' access to comprehensive patient information," said McKesson president Graham King.
"This acquisition allows us to automate the diagnostic workflow and expand our offering to the specialists that are so essential to consistent, high-quality care delivery," he said.
McKesson the the 31st largest U.S. industrial company, with annual revenues of more than $50 billion US.