British outsourcing firm Mitie Group Plc announced its intention to acquire smaller rival Marlowe Plc in a cash-and-stock deal valued at approximately £366 million ($496 million). The offer, which implies a valuation of around 10 times Marlowe's last twelve months EBITDA, caused Marlowe's shares to rise by nearly 20% over two days, initially increasing by 12% upon news of takeover discussions and then by an additional 8% following confirmation of the bid. Despite the positive market reaction for Marlowe, Mitie Group's shares declined by 10% after the acquisition announcement, even though the company reported solid financial results. Market commentary noted that the offer price was somewhat below expectations, with some anticipating a bid exceeding £5 per share.