Elliott, Patient Square, Veritas to Take Syneos Health Private for $7B+
A consortium of private equity investors, including Elliott Investment Management, Patient Square Capital and Veritas Capital, agreed to take Syneos Health, a contract research organization, private for $7.1 billion, including nearly $3 billion in debt.
The group will pay $43 a share in cash for the North Carolina-based company, representing a 24% premium to its closing price on February 13, 2023. The transaction is expected to close in the second half of 2023.
“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,” said John Dineen, Chair of the Syneos Health Board of Directors.
Over the years, private ownership of contract research companies has changed. The industry has been viewed to wager on the sector’s overall growth without the volatility risk of investing in particular medications or tiny biotechs because of its recurrent revenues and collaboration with the biotech and pharmaceutical industries.
Syneos was established in 2017, when INC Research Holdings acquired inVentiv Health for $7.4 billion, including debt. To work with Microsoft Research and take advantage of advancements made by OpenAI, Syneos and Microsoft struck a strategic multi-year deal earlier this year.