Syneos Health to be Taken Private for $7.1 Billion
Syneos Health, a global contract research organization (CRO) headquartered in Morrisville, will likely be sold to a consortium of private investment firms in a deal valued at $7.1 billion.
The publicly traded company has signed a definitive agreement to be taken private by Elliott Investment Management, Patient Square Capital and Veritas Capital for $43 per share in cash plus outstanding debt.
The agreement comes after “a comprehensive review of opportunities available to Syneos Health, including interest from multiple parties,” said John Dineen, chair of the company’s board of directors.
The board “unanimously determined that this all-cash transaction maximizes value for our shareholders and is in the best interests of the company and all stakeholders,” Dineen said. “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.”
The transaction is expected to close in the second half of 2023, subject to the approval of Syneos Health shareholders and other customary closing conditions, including regulatory approvals.
The company said it expected to keep its global headquarters in Morrisville.
“We have long appreciated Syneos Health’s leadership position in serving large pharma and biotech customers globally, across both clinical development and commercialization,” said Marc Steinberg, senior portfolio manager for Elliott. “Syneos Health is at an important stage in its evolution. We look forward to partnering with Patient Square and Veritas, as well as the talented team at Syneos Health, to further reinforce the company’s core capabilities and help drive its next phase of growth.”
The announcement of the sale comes nearly six years after Syneos Health was created by the $7.4 billion merger of INC Research and inVentiv Health in August 2017.
“Based on first-hand experience in the industry, we are huge believers in the value that contract research and commercial organizations provide to their clients by accelerating and maximizing the likelihood of clinical success and optimizing a product’s potential to impact patients,” said Jim Momtazee, managing partner of Patient Square. “We have followed the journey of Syneos Health for years and believe the company and its world-class employees provide a strong foundation to build upon, always providing unparalleled service to clients.”
Syneos is one of the world’s largest CROs. It has about 27,000 employees in 110 countries and reported nearly $5.4 billion in revenue in 2022.
“Consistent with our successful history of transforming businesses in the healthcare ecosystem, and in partnership with the Syneos Health team and the consortium, Veritas looks forward to driving investment in the Company to underscore Syneos Health’s position as a market leader and to enhance its ability to deliver medical innovations to patients across the globe,” said Ramzi Musallam, chief executive officer and managing partner of Veritas.
Syneos helps biopharmaceutical companies improve performance, reduce risk and speed therapies to patients worldwide through clinical development, commercialization, consulting and medical affairs services.
In April Syneos was awarded the Vaccine Industry Excellence Award for Best Contract Research Organization, presented at the 2023 World Vaccine Congress in Washington, D.C. In the last five years, the company’s Catalyst Vaccine Network sites have conducted more than 700 vaccine studies, enrolling nearly 50,000 patients.