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Health data firms to merge in $9 billion deal

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(Reuters) — Contract medical research provider Quintiles Transnational Holdings Inc. agreed to merge with health care information company IMS Health Holdings Inc. in a deal worth about $9 billion.

The combined company, which will have a market value of nearly $18 billion, will offer drug and medical device makers services ranging from helping run clinical trials to tracking sales once a product has hit the market.

Quintiles will offer 0.384 of its shares, valuing each IMS Health share at $26.53, based on Quintiles' Monday close. Quintiles' shares were down 3% at $67, while IMS Health's shares were untraded before the opening bell on Tuesday.

The offer values the all-stock deal at about $9 billion, based on 339.3 million IMS diluted shares outstanding as of Dec. 31, according to Reuters data.

After the deal, IMS Health shareholders will own about 51.4% of the combined company, while Quintiles shareholders will own the rest.

The new company — Quintiles IMS Holdings Inc — will be led by IMS Health CEO Ari Bousbib, while Quintiles CEO Tom Pike will be the vice chairman.

Quintiles IMS Holdings will maintain dual headquarters in Danbury, Connecticut, and Research Triangle Park, North Carolina.

The deal, which is expected to close in the second half of 2016, is expected to add to the combined company's 2017 earnings.

IMS Health, which provides market and sales research services to the health care industry, was advised by Goldman Sachs Group Inc. Its legal adviser was Weil, Gotshal & Manges L.L.P.

Quintiles' financial adviser was Barclays P.L.C. Its legal advisers were Bryan Cave L.L.P. and Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan L.L.P.

The companies said they intended to refinance some debt in connection with the merger and that committed financing had been obtained.