Any time companies merger, they talk about cost savings and “synergies.” That often means layoffs with redundant services and more often being cut. So will there be an immediate impact in Durham at Quintiles’ global headquarters? And why merge with IMS Health Services?

Quintiles (NYSE: Q) and IMS (NYSE: IMS) announced the merger early Tuesday, noting numerous benefits including some $100 million in savings per year within three years of the deal closing. The two firms have already been working as partners for months.

WTW asked Phil Bridges, Senior Director for Corporate Communications at Quintiles, for details.

  • Why do the deal?

The merged company brings together two industry leaders to address life-science companies’ most pressing issues.  The new company will combine extensive healthcare information, technology and services solutions to drive efficiencies across the entire life science product cycle from R&D through commercial field operations. 

IMS Health’s information assets include more than 15 petabytes of encrypted and secure data, more than 500M anonymized patient records and more than 85% coverage of global pharma sales. 

Quintiles’ scientific and therapeutic assets include more than 1,100 medical doctors, approximately 1,050 PhDs, about 850 statisticians & statistical programmers, and 14 therapeutic and specialty centers of excellence.

We believe this combination creates a compelling and differentiated value proposition for our clients, helping them to solve their most pressing challenges. In the meantime, the two companies are operating separately and remain focused on their existing commitments.

  • Can layoffs be expected as part of this deal?

The merger is intended to accelerate growth in the combined company.  The portfolios of the two companies are complementary and there is very little overlap in the service portfolios of each company.  In the coming weeks and months, a joint integration team from IMS Health and Quintiles will meet to focus on integration planning, looking at where opportunities exist to leverage the strengths of both organizations after the merger is completed. 

  • Even though there will be dual headquarters, what impact will there be on Q’s operations in Durham and NC?

The merged company will have company executives based in both locations.

There are no immediate plans to modify locations or employee mix at those locations.