Pamplona Capital to take Parexel private for $4.5 bln


UPDATE 3-Pamplona Capital to take Parexel private for $4.5 bln

(Changes source, adds details, shares)
    By Carl O'DonnellJune 20 (Reuters) - U.S. pharmaceutical research services
provider Parexel International Corp <PRXL.O> said on Tuesday it
would be taken private by Pamplona Capital Management LLP in a
$4.5 billion deal.
    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
    Pamplona will pay $88.10 per share in cash for Parexel,
representing a 5 percent premium to the stock's Monday close.
Parexel's shares were trading at $87.67 before the bell, just
shy of the offer price.
    The stock has jumped more than 20 percent since the first
report of a potential sale appeared in May.
    Including debt, the deal is valued at $5 billion.
    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 focuses on cancer drug research and has a
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 health insurers.
    Pamplona had 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.
    The contract research industry has been undergoing a wave of
consolidation as pharmaceutical companies cut costs, reduce
clinical trial times and expand their research and development
presence around the world.
    Deal-making also allows companies to profit from economies
of scale, 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. Contract
researcher Quintiles Transnational Holdings Inc completed a $9
billion merger with IMS Health Holdings Inc last year.
    The Parexel deal is expected to close in the fourth quarter.
    Goldman Sachs is Parexel's financial adviser, while Goodwin
Procter LLP served as legal adviser. Perella Weinberg Partners
LP Pamplona's financial adviser, while Kirkland & Ellis LLP is
their legal adviser. [nBwbKqKN4a]

 (Reporting by Carl O'Donnell in New York; Additional reporting
by Michael Flaherty and Greg Roumeliotis in New York and Subrat
Patnaik and Akankshita Mukhopadhyay in Bengaluru; Editing by
Adrian Croft and Saumyadeb Chakrabarty)
 ((subrat.patnaik@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 80 6749 8052; Reuters Messaging:


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