All the rumors are true: Syneos Health inks $7.1B acquisition with investment firm trio

All the rumors are true: Syneos Health inks $7.1B acquisition with investment firm trio

All the rumors are true. After months of sale speculation, Syneos Health has officially been snapped up by three private investment firm affiliates for the eye-watering sum of $7.1 billion.

The North Carolina-based CRO has inked a deal to be acquired by Elliott Investment Management, Patient Square Capital and Veritas Capital for $43 per share in cash. The total transaction is valued at $7.1 billion, a figure that includes outstanding debt. The purchase price adds a 24% premium to Syneos’ closing stock price on Feb. 13—the last day of trading before media reports surfaced suggesting the CRO was searching for a buyer.

In late February, Reuters reported that the company had hired Bank of America and Centerview Partners to help in talks with potential buyers. In early May, the international CRO tapped a new chief financial officer, set to start July 1, a move that further fueled the rumor mill. Syneos was first reported to be looking to put itself on the block in 2020—just two years after it was formed in a $7.4 billion merger of INC Research and inVentiv—but the COVID-19 pandemic chilled any potential interest.

Now, the rumors have finally come to fruition, with the acquisition expected to close in the second half of the year, subject to the approval of Syneos shareholders and regulatory approvals. The merger has already been unanimously approved by the CRO’s board of directors.

“The company has a strong operating foundation, differentiated, integrated solutions and a focus on being committed to customers,” John Dineen, Syneos’ board chair, said in a May 10 release. “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.”

After the deal closes, Syneos will go private, removing itself from the public market. Since the news broke, the CRO’s stock has jumped 8.7% from market close yesterday, rising from $38.45 per share to $41.80 today at 10:30 a.m. ET.

The company, which specializes in running late-stage clinical trials, also reported earnings for the first quarter today, raking in $1.36 billion in revenue for the first three months of 2023.

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