(Bloomberg) -- Triton Investment Management Ltd. agreed to buy U.K. pharmaceutical company Clinigen Group Plc for 1.2 billion pounds ($1.6 billion) in cash. 

Clinigen shareholders will receive 883 pence a share, a 41% premium to the price before news of talks emerged, according to a statement Wednesday. A previously declared final dividend will also be paid out. 

Triton is a European private equity firm with a history of investing in healthcare, including in pharmaceutical companies. 

Clinigen acquires the rights to niche commercial drugs and expands their distribution. It also helps patients get access to treatments that aren’t licensed in their countries. The company has a separate division providing services to drugmakers running clinical trials, helping with areas such as packaging, distribution and medicine sourcing. 

Earlier this year, Elliott Investment Management disclosed a 5% stake in Clinigen. The company has long been seen as a takeover target for buyout firms. In June, the company’s stock plunged when it gave lower-than-expected earnings guidance.

Triton said it has been following Clinigen for a long time and the company “performs an important role in providing medicines around the world for patients with unmet needs.” 

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