Philadelphia-based eResearch Technology, a technology-driven provider of health outcomes research services to sponsors and CROs, has agreed to be acquired by affiliates of Genstar Capital, a middle market private equity firm, for $8 per share in cash in a transaction valued at approximately $400 million.
The proposed transaction has been approved unanimously by the ERT board of directors. The $8 per share represents a premium of approximately 38% over ERT's average closing share price for the 90 trading days ending April 9, 2012, and 42% over the 52-week average.
"We are pleased to announce this transaction with Genstar, whose experienced team of healthcare executives can provide strategic oversight, as well as acquisition capital, to expand the company's service offering and market opportunities,” said Dr. Jeffrey Litwin, CEO of ERT. “They will help position ERT to better serve our clinical research clients by continuing to fund the innovative devices and services that have made us the premier provider of health outcomes research services."
Robert Weltman, managing director of Genstar, said, "ERT is an attractive opportunity that fits with Genstar's outsourcing thesis within the life sciences and pharmaceutical services sector. We are excited about helping the company evolve its offering and better serve its customers."
Pending stockholder approval and satisfaction of normal regulatory and closing conditions, the transaction is expected to be completed during the third quarter, after which ERT will become a privately held company and its stock will no longer trade on Nasdaq.