RALEIGH – Executives at life science services competitors PRA Health and ICON cited several major reasons – including costs savings – for the $12 billion merger that was announced early Wednesday.
The companies will combine their headquarters into one operation based in Dublin, Ireland.
“The transaction is anticipated to be highly accretive delivering double-digit accretion in the first full year and growing to 20%+ thereafter, driven by growth momentum, estimated annual run-rate cost synergies of $150 million, and the combined effective tax rate decreasing to 14%, both to be realised in approximately 4 years,” ICON said in the filing.
Here are the reasons as cited in an SEC filing about the deal:
- The consolidation brings together two organizations with a history of robust growth and performance ready to build on this strength using the outstanding talent of both companies to deliver enhanced value to patients, customers, employees and shareholders.
- All customers will benefit from increased functional, geographic and therapeutic scale as well as expansive healthcare technology innovation.
- The combination will address the growing market need for de-centralised and hybrid trial solutions from a differentiated combination of mobile and connected health platforms, a global site network, home health services and wearables expertise.
- The combined business will be no. 1 or 2 in key clinical market segments and have formal strategic partnerships with a majority of the top 20 biopharma companies, providing a platform for growth and innovation.
- Significant shareholder value creation expected as a result of strong industry momentum and leveraging best practice operating models, revenue, cost and tax synergies.
