Investment consortium nears deal for Syneos Health -sources (updated)

Syneos Health

09/05/2023 22:07

(Adds background on share price movement, details, background
about company's debt, paragraphs 2-10)
    By Anirban Sen
       NEW YORK, May 9 (Reuters) - A consortium comprising
Elliott Investment Management, Patient Square Capital and
Veritas Capital is nearing a deal to acquire Syneos Health Inc
 SYNH.O , a provider of clinical research to drug developers
with a market value of $4 billion, people familiar with the
matter said.
    While the price that the consortium is paying for Syneos
could not be learned, the company's shares have risen over 20%
since Reuters first reported on Feb 27 that Syneos was exploring
a potential sale. 
    The sources requested anonymity because the matter is
confidential. Syneos, Elliott, and Veritas did not immediately
respond to requests for comment. Patient Square declined to
comment. 
    Bloomberg News first reported the news of the investment
consortium's talks with Syneos. Shares of Syneos were up about
19% in after-market trading. 
        Based in Morrisville, North Carolina, Syneos helps
pharmaceutical companies with clinical trials and to market
their drugs. 
  
        Syneos, which carries a debt pile of nearly $3 billion,
was created in 2017 by INC Research Holdings Inc's acquisition
of inVentiv Health Inc for $7.4 billion, including debt.
  
        INC Research changed its name to Syneos in 2018. The
deal buoyed the company by giving it scale and broadening its
offerings for the outsourcing of the development and
commercialization of drugs. 
  
        Syneos reported a total backlog for contracts of $6.8
billion as of the end of 2022, down from $7.5 billion as of the
end of 2021.
  
        There has been a wave of consolidation among contract
research organizations seeking to lower costs, amass more
clinical trial data and win customers.
  
        Most recently, Thermo Fisher Scientific Inc  TMO.N 
acquired PPD Inc for $17.4 billion and Icon Plc  ICLR.O  took
over PRA Health Sciences Inc for $12 billion. 
  

 (Reporting by Anirban Sen in New York; Editing by David
Gregorio)
 ((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters
Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))