Pamplona Capital Management is to acquire the outstanding shares of biopharma services provider Parexel International in a deal worth $5 billion.
“Today’s announcement is the culmination of a comprehensive review of the opportunities available to the Company, including interest solicited and received from multiple parties with the assistance of independent financial and legal advisors,” said Josef von Rickenbach, Chairman and Chief Executive Officer of Parexel.
“Having considered these opportunities, the Parexel Board of Directors unanimously determined that this all-cash transaction and the significant, certain value it provides is in the best interest of Parexel shareholders, as well as our company.”
He added: “Parexel benefits from a strong operating foundation with expertise and resources to support our clients in their clinical trials around the world. However, as our results over the past year show, the market for biopharmaceutical services is evolving.
“We believe the more flexible corporate structure afforded by this transaction will better position us to advance Parexel’s strategy in light of these realities and to shape the Company to best capitalize on our exciting market opportunities.”
The transaction is expected to close early in the fourth quarter of 2017, subject to the approval of a majority of Parexel shareholders and the satisfaction of other customary closing conditions.
Upon the completion of the transaction, Parexel will become a privately held company.