Paxman Scalp Cooling takes over main rival in £11.6m deal
Paxman Scalp Cooling, a global pioneer in scalp cooling to help prevent hair loss during chemotherapy, has announced the takeover of its main competitor.
Huddersfield-based Paxman, which is listed on Sweden’s Nasdaq First North Growth Market, is acquiring Dignitana in deal worth 153 Swedish Krona (£11.6m).
The transaction represents an 81 per cent premium in Dignitana’s closing share price on Monday.
Dignitana, which is based in Texas, said it board of directors have unanimously recommended shareholders to accept the offer. The acceptance period is expected to beginon or around 14 Apriland end around 5 May 2025, with payment of consideration expected to be made on or around 13 May 2025.
Paxman, was founded in 1997 by Glenn Paxman when his wife Sue lost her hair during chemotherapy treatment. Seeing the trauma that Sue experienced, Glenn realised that there were shortcomings in the existing methods for scalp cooling that needed to be improved, so he developed a liquid-based cooling system with the support of his brother.
Today, Paxman, which was listed on Nasdaq First North Growth Market in 2017, has around 6,000 systems installed around the world. Revenue for FY 2023 was around £16m.
Paxman CEO Richard Paxman said the takeover is an important milestone for the company. He said: “Paxman and Dignitana have developed a strong relationship over the past few years, and we share a very common vision. With the strength of both companies, we are well positioned to achieve that vision in a faster and more meaningful way.
“There is a clear synergistic value and strength to be gained through the merger of these two fine companies, and we look forward to this strengthened position as we enter a period of exciting changes in the reimbursement landscape in the USA. Change is, of course, inevitable but for the better, ensuring that we have the right resources for the next chapter in our growth story.”
