The terms of the acquisition, which have been agreed by the Cello board of directors, value the company at around £178.8m.

Cello Health offers a range of services in business insights, analytics and strategic consulting for pharmaceutical companies. The group has offices in the UK, US and Asia.

The recommended cash offer comes from Bidco, a new company set up to make and implement the acquisition owned by Value Demonstration, which is backed by Arsenal Capital.

Under the terms of the proposed deal, Cello shareholders would be entitled to receive 161 pence in cash for each share.   

It follows Arsenal’s acquisition of health economic research consultancy BresMed Health Solutions.

Jon Williams, chief executive of Value Demonstration, said: “Cello’s breadth of relevant capabilities, scientific credentials, strong client relationships and market reputation for excellence will significantly progress our ambition of becoming the global leader in the space. We are also excited at the prospect of complementing the capabilities of the Cello team with those from the recent acquisition of BresMed. This, we believe, will create a compelling and differentiated services platform, led by strong and seasoned management teams, that consists of strategic consultancy, market access, health economics research and communications.”

Mark Scott, chief executive at Cello, said: “The Cello directors are confident that, as part of the Value Demonstration platform with Arsenal’s backing, Cello will be optimally positioned to accelerate its current strategy and capitalise on a broader range of opportunities. This transaction will ensure the continued success of the business for its employees and clients.”

The proposed acquisition is subject to various conditions.