Research Holdings to buy privately-held inVentiv Health for $4.6 bn

Research Holdings Inc, a global Phase I–IV Contract Research Organization (CRO), today struck a deal to buy privately-held inVentiv Health Inc, for $4.6 billion in an all-stock transaction in order to become one of the top three contract research organisations.

Based upon the closing share price of INC Research on 9 May, the transaction values inVentiv at an enterprise value of around $4.6 billion, and the combined company at an enterprise value of approximately $7.4 billion.

Post closing, INC Research shareholders will own approximately 53 per cent and inVentiv shareholders will own approximately 47 per cent of the combined company.

Private equity firms Advent International and Thomas Lee Partners, currently equal owners of inVentiv, will remain investors in the combined company upon closing of the merger.

The transaction is expected to generate approximately $100 million in annual run-rate cost synergies within three years.

The combined company will have more than 22,000 employees spanning more than 60 countries, and will serve customers in more than 110 countries.

The merger will create a global leader in Phase I–IV clinical development, and the combined company will become one of the Top 3 CROs globally.

The transaction will expand the combined company's global presence in important strategic geographies such as Asia / Pacific and specifically Japan, where there is significant opportunity for growth.

inVentiv is a global services organisation that helps the biopharmaceutical industry accelerate the delivery of much-needed therapies to market.

It employs more than 15,000 people and operates in more than 90 countries.

Carolina-based INC Research is a global CRO providing the full range of Phase I to Phase IV clinical development services for the biopharmaceutical and medical device industries.

It operates across six continents spanning more than 110 countries.

''The combination of INC Research and inVentiv will expand our global scale and add capabilities to grow our addressable market. Both companies have a history of successfully integrating acquisitions, and I am confident that we will capitalize on the many opportunities this combination creates for all stakeholders,'' said, Alistair Macdonald, CEO of INC Research.

''As biopharmaceutical companies of all sizes face increasingly complex challenges to bring products to market, they are seeking comprehensive outsourced solutions across the clinical and commercial spectrum. The new company is purpose-built to address market realities where clinical and commercial must work together, sharing expertise, data and insights, to improve client performance,'' said, Michael Bell, CEO of inVentiv Health.