US-based private equity firm Stonepeak has agreed to an all-cash deal to acquire New Zealand-based senior care specialist Arvida Group for NZD1.24bn ($745.74m) excluding debt, according to a report by Reuters.

News of the acquisition saw Arvida's shares surge by nearly 60% on Monday to NZD1.62, their highest level in over two years. Shares of rival companies including Ryman Healthcare and Summerset also saw increases of 7.7% and 2.25% respectively, on the speculation of further consolidation in the sector.

Stonepeak, which manages assets of around $71.2bn, has offered NZD1.70 per Arvida share – a 65% premium to the company's last closing price on Friday. The offer has received backing from Arvida's board and is not subject to any financing or due diligence conditions.

According to a statement from Stonepeak, Arvida's enterprise value including debt stands at NZD1.25bn.