Investment consortium to buy Syneos Health in $7.1 bln deal (updated)

Syneos Health

10/05/2023 11:59

(Adds per share value, background in paragraphs 4, 5 & 6)
       May 10 (Reuters) - An investment consortium, comprising
of Elliott Investment Management, Patient Square Capital and
Veritas Capital, has agreed to buy Syneos Health Inc  SYNH.O ,
in a deal valued at $7.1 billion, including debt, the contract
research firm said on Wednesday.
    Syneos shares rose 10.4% before the bell.
    Syneos said the consortium will pay about $43 per share in
cash, which represents a premium of about 12% to the company's
last close of $38.45.
    The deal comes at a time when Syneos faces challenges in
winning new business, as many of its clients, which includes
medium-sized biotechs, have cut spending as they have found it
difficult to raise funding in a post-COVID-19 market downturn.
    Deal comes days after a private-equity groups including
Warburg Pincus and Advent International agreed to buy Baxter
International  BAX.N  biopharma solutions unit for $4.25
billion. 
    PE firms have increasingly been investing in the drug
development sector, which was deemed as risky, by coming up with
deals that compensate them for the uncertainty involved.
    

 (Reporting by Bhanvi Satija and Khushi Mandowara in Bengaluru;
Editing by Shailesh Kuber)
 ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))