PE investment group issues $1.7bn in notes to fund Syneos takeover
Star Parent, the investment vehicle buying Syneos Health, has issued $1.7 billion in senior secured notes in a move designed to funding the takeover.
The private equity group- a consortium led by Elliott Investment Management, Patient Square Capital and Veritas Capital Fund Management – announced the issue last week, explaining it intends to use the proceeds together with other financing sources to fund the acquisition.
Plans for the takeover were made public in May when the funds said they would pay $7.1 billion for the contract research organization (CRO).
Just prior, Reuters reported that Syneos was seeking a buyer, citing a reduced backlog of contracts that led to a 52% plunge in its shares over 2022 as the motivation for the move.
At the time, Syneos chairman, John Dineen, 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.”
Since the takeover agreement Syneos has signed a number of deals to expand the geographic reach of its clinical trials business.
In late June, for example, the firm named Shigeto Miyamoto as vice president of Digital Solutions for Asia Pacific (APAC), tasking him with driving commercial customer growth and the Company’s digital and analytical capabilities and service offerings in the region.
Syneos also signed an agreement with New Zealand trial site organization Optimal Clinical Trials to expand its capabilities across a broad range of therapeutic areas, including oncology, CNS and vaccines.
In addition, the CRO expanded its catalyst site program – which is designed to accelerate drug study start-up - in New Zealand, Malaysia and China.
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