UPDATE 2-Pamplona Capital Management nears deal to buy Parexel-source
(Adds own sourcing, details)
By Carl O'DonnellJune 20 (Reuters) - Private equity firm Pamplona Capital
Management LLP is nearing a deal to acquire U.S. pharmaceutical
research services provider Parexel International Corp <PRXL.O>
for more than $4.5 billion, a person familiar with the matter
said on Tuesday.
Activist investors, including Starboard Value LP, have put
pressure on Parexel to explore a sale, arguing that the
company's profit margins have consistently lagged those of its
The deal will be announced later on Tuesday, the source
said. Pamplona is set to pay $88.10 per share in cash for
Parexel, the Wall Street Journal reported earlier on Tuesday.
Parexel shares ended trading on Monday at $83.92.
The source asked not to be identified because the
negotiations are confidential. Parexel and Pamplona did not
immediately respond to requests for comment.
Headquartered near Boston, Massachusetts, Parexel provides a
range of services to the pharmaceutical industry, ranging from
drug development and regulatory consulting, to clinical
pharmacology, clinical trials management, and reimbursement.
The company has leadership position in cancer drug research,
and a top platform for so-called 'real-world' data, which can be
used to assess the economic value of medicines and is sought
after by drug makers looking to justify their prices to
Pamplona has been scouring the market in the last year
seeking to acquire a contract research organization. It made an
unsuccessful bid earlier this year for Pharmaceutical Product
Development LLC (PPD), a U.S. clinical trials firm valued at
more than $9 billion.
Overall, the contract research industry has benefited from
the pharmaceutical companies' drive to cut costs, reduce
clinical trial times and expand their research and development
presence around the world.
Many companies in the sector are now turning to dealmaking,
as they seek to boost their real-world data gathering
Last month, INC Research Holdings Inc <INCR.O> agreed to
merge with inVentiv Health Inc in a $4.6 billion deal.
Last year, contract researcher Quintiles Transnational
Holdings Inc completed a $9 billion merger with IMS Health
(Reporting by Carl O'Donnell in New York; Additional reporting
by Michael Flaherty and Greg Roumeliotis in New York and Subrat
Patnaik in Bengaluru; Editing by Adrian Croft)
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Keywords: PAREXEL INTL M&A/PAMPLONA (UPDATE 2)