Private equity investors have bought US trial contractor Syneos Health in a deal that values the CRO at $7.1 billion.
The PE group – which includes Elliott Investment Management, Patient Square Capital and Veritas Capital – said it expects the deal to complete in the second half of the year subject to approval by shareholders and financial regulators.
The Company said it expects to maintain its headquarters in Morrisville, North Carolina.
Veritas CEO Ramzi Musallam said the consortium “looks forward to driving investment in the Company to underscore Syneos Health’s position as a market leader and to enhance its ability to deliver medical innovations to patients across the globe.”
This was echoed by Elliot’s Marc Steinberg, who said “We look forward to partnering with Patient Square and Veritas, as well as the talented team at Syneos Health, to further reinforce the Company’s core capabilities and help drive its next phase of growth.”
Reuters reported Syneos was seeking a buyer earlier in the year, citing a reduced backlog of contracts that led to a 52% plunge in its shares over 2022 as the motivation for the move.
This process was referenced by Syneos chairman, John Dineen, who was equally upbeat about the deal.
He told analysts “This agreement is the culmination of a comprehensive review of opportunities available to Syneos Health, including interest from multiple parties with the assistance of independent financial and legal advisors.
He added: “We believe this transaction will enable Syneos Health to continue to accelerate its growth strategy, enhance customer delivery and evolve the organization toward a tech-enabled future.”
News of the planned acquisition comes just a few weeks after Syneos hired a new chief financial officer - Michael Bonello.
It also comes a few months after the CRO announced the multi-year agreement with Microsoft to help it apply artificial intelligence (AI) to its clinical and commercial businesses.