By Joshua Jamerson
INC Research Holdings Inc. has reached an agreement to combine with private-equity owned inVentiv Health, creating a large biopharmaceutical outsourcing provider the companies hope will better capture growing demand for outsourced services.
The all-stock transaction, based on the closing price of INC Research common stock Tuesday, values inVentiv at $4.6 billion including debt and gives the combined company a value of about $7.4 billion. INC Research shareholders will own 53% of the combined firm, and inVentiv shareholders are slated to hold 47%.
INC shares, inactive in premarket trading Wednesday, closed Tuesday at $43.65. INC Research had a market capitalization of roughly $2.4 billion.
Raleigh, NC-based INC Research is a contract research company that provides clinical development services for biopharmaceutical and medical-device industries.
Advent International and Thomas H. Lee Partners, two private-equity firms, are equal equity owners of inVentiv and will remain investors in the combined company after the transaction.
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