Scientific tools maker Oxford Instruments has successfully ended its five-month pursuit of Andor Technology. The latter has finally agreed to a GBP176 million takeover bid for its Belfast-based business, according to The Telegraph.

Andor had previously rejected an earlier GBP500 per share offer from Oxford. Last week, the Oxford university spin-out sweetened its bid by 5%. The offer was increased to GBP525 per share, the report detailed.

Oxford's improved offer is backed by Cazenove Capital Management, which owns 9.8% of Andor stock. Polar Capital with 3.89% and Andor's management with 4.25% also backed the bid. The takeover transaction has a 90% acceptance condition. Oxford said the offer will be funded by existing cash resources and financing arrangements by HSBC, RBS, and Santander, the report said.

According to Oxford's chief executive Jonathan Flint, the takeover was not designed as a cost-cutting move. Flint also said the company would retain Andor's base and staff in Belfast, The Telegraph reported.

Andor chairman Colin Walsh said of the deal: "After several months spent carefully evaluating our strategic alternatives, the Board believes that the Offer represents the best possible means of maximising shareholder value in the short to medium term."