In a move that will take Reston, Va.-based contract research organization (CRO) PRA International off the public market, the company has entered into an agreement to be purchased by Genstar Capital, a private equity group based in San Francisco. The deal is valued at $790 million.
If the deal is completed, shareholders would receive a cash buyout of $30.50 per common share. That would be a 24% premium over PRA’s average closing price for the last three months.
During a conference call, PRA executives said that Genstar will invest in the company to accelerate plans for expanding the firm’s service offerings and broaden its geographic footprint.
In response to an analyst’s question, Terrance Bieker, chief executive officer of PRA, said its board of directors came to the conclusion that the right course of action was to provide its shareholders with an immediate premium on their investment.
Some analysts on th call questioned the current buyout, stating that PRA was already on course to surpass its premium buyout offer of $30.50 per share, especially given the company’s last few quarterly earnings.