On May 10th, leading biopharmaceutical solutions organisation Syneos Health Inc. announced its agreement to be acquired by a consortium of private investment firms. The consortium, composed of Elliott Investment Management, Patient Square Capital, and Veritas Capital, will purchase Syneos Health for $43.00 per share in cash, resulting in a transaction valued at approximately $7.1 billion, including outstanding debt.
The acquisition price represents a 24% premium to Syneos Health's closing stock price on February 13, 2023. The Syneos Health Board of Directors unanimously approved the merger agreement, considering it to be in the best interests of the company and its shareholders. The all-cash transaction aims to maximise value for shareholders while enabling Syneos Health to accelerate its growth strategy and advance toward a tech-enabled future.
As a leading fully integrated biopharmaceutical solutions organisation, Syneos Health is committed to translating clinical, medical affairs, and commercial insights into outcomes that address the realities of the modern market. With a diverse and talented team operating across more than 110 countries, the company focuses on accelerating the delivery of important therapies to patients by leveraging insights, advanced technologies, and advanced business practices.
Being acquired by a consortium is what makes this merger particularly interesting as only Patient Square Capital specialises in health care investment whilst Veritas Capital is a private equity firm focused on technology based services and product and Elliot Investment Management is a fund manager that manages a very diverse portfolio (over $55.2 billion in assets). Critics argue that the firm is therefore not going in the right hands as all companies do not seem to have appropriate expertise. However, these firms combined may offer a diversification of expertise which can mitigate risks and increase long term stability. Furthermore, the size of these firms allow firms to share the financial burden of the acquisition as well as potentially increasing their deal making power as they can leverage this in negotiations and agreements.
The acquisition is expected to be completed in the second half of 2023, subject to approval from Syneos Health shareholders and the fulfilment of customary closing conditions. Following the completion of the transaction, Syneos Health will become a private company, and its Class A common stock will no longer be traded on the Nasdaq. The company intends to maintain its headquarters in Morrisville, North Carolina.
Sources: Globenewswire.com, ft.com
Written by Siya Goyal
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