IPH Ltd (ASX: IPH) has submitted a proposal to potentially acquire Xenith IP Group Ltd (ASX: XIP).

Both IPH and Xenith IP are intellectual property legal firms that are listed on the ASX.

What IPH is proposing

IPH is proposing to acquire Xenith IP Group for a combination of cash of IPH shares.

The IPH offer prices Xenith at $1.97 per share, being $1.28 cash and 0.1056 IPH share for each Xenith share. This offer is a 23.3% premium to the proposed merger with QANTM Intellectual Property Ltd (ASX: QIP).

As part of the pitch, IPH said that by offering some IPH shares as part of the deal it enables Xenith shareholders to participate in the growth, development and potential upside for the combined group.

IPH CEO and Managing Director Dr Andrew Blattman said: “We believe our proposal to Xenith provides a great opportunity to bring together two high quality IP businesses to draw on the strengths, skills, advantages of each member firm to realise opportunities”.

This certainly seems like an interesting deal and IPH is very keen to acquire one of its competitors. I don’t know enough about IPH or Xenith to say if they are buys or not. But, I do think the shares in the free report below could be buys for the long term.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).