inVentiv Health to acquire PharmaNet
InVentiv Health, a service provider to the healthcare industry, has signed a definitive agreement to purchase CRO PharmaNet Development Group. Financial terms of the transaction were not disclosed.
With the addition of PharmaNet, inVentiv said it will extend its global presence to nearly 40 countries and enhance both its early- and late-stage clinical development capabilities. In conjunction with its previously announced agreement to acquire CRO i3, inVentiv Health said it will be positioned for accelerated growth in the $21 billion global pharmaceutical outsourcing industry.
Following the acquisitions, inVentiv will have 13,000 employees in three divisions: Clinical, Commercial and Consulting. More than 6,000 employees will be dedicated to clinical research worldwide, including emerging markets in Asia, Latin America and Central/Eastern Europe.
InVentiv said the acquisitions will provide the scale and scope to participate in strategic alliances of any size and will give inVentiv greater opportunities for growth as pharmaceutical companies continue to increase outsourcing to enhance flexibility and lower fixed costs.
"One of our key strategic objectives is to be recognized as the leader in every segment where we serve our clients," said Paul Meister, CEO of inVentiv Health. "The acquisition of PharmaNet positions us among the top global CROs, increasing our capabilities, adding new expertise in every phase of clinical development, and strengthening our impressive client base and strong management team."
Jeffrey P. McMullen, President and CEO of PharmaNet, said, "Our team is fully committed to continuing to grow our business and executing on the future opportunities that this combined offering provides to both our customers and employees."
McMullen, who will lead inVentiv's CRO businesses, said he chose to work with inVentiv because the organizations share the same client-centric approach and strong therapeutic expertise in oncology, rheumatology and neuroscience, as well as in clinical technologies. "In the day-to-day operations, little will change. We will continue to provide the same level of exceptional service that our clients have come to expect of us."
PharmaNet offers drug development capabilities and expertise in phase I through IV clinical trials, bioanalytical services, pharmaceutical and regulatory consulting and staffing. About half of PharmaNet's revenue is generated outside the United States.
"In the evolving global market, scale is a key competitive advantage to developing strategic relationships with our clients. This acquisition allows us to achieve critical scale while providing enhanced services to our clients any time they need them, anywhere in the world," Meister said.
BofA Merrill Lynch, Citi and Jefferies Finance provided financing commitments to inVentiv Health to support the transaction. Jefferies & Company and UBS Securities acted as financial advisor to PharmaNet. The transaction is subject to customary closing conditions and is anticipated to close on or about June 30, 2011.
inVentiv Health is privately owned by inVentiv Group Holdings, an organization sponsored by affiliates of Thomas H. Lee Partners, Liberty Lane Partners and members of the inVentiv management team.
PharmaNet was acquired in 2009 by JLL Partners, a New York-based private equity investment firm. Ramsey A. Frank, a JLL partner, said, "We are very proud of the significant accomplishments PharmaNet has achieved. We have worked in close partnership with the company's management team to drive operational efficiencies and outstanding new business momentum."
Upcoming Events
-
23Apr
-
07May
-
14May