Uniting two of the pharmaceutical industry’s leading providers of data and services, Danbury-based IMS Health Holdings Inc. and Durham, N.C.-based Quintiles Transnational Inc. have agreed to merge in an all-stock deal worth roughly $9 billion. The resultant entity, Quintiles IMS Holdings, expects to maintain dual headquarters in Danbury and North Carolina.
IMS Health shareholders will receive 0.384 share of Quintiles common stock for each of their shares, and will own about 51.4 percent of the combined business, according to a company statement.
IMS is a global information and technology services company providing clients in the health care industry with end-to-end solutions to measure and improve their performance. A Fortune 500 company, Quintiles is the world”™s largest provider of product development and integrated health care services, including commercial and observational solutions.
The merger “brings together leading technology and analytics with deep scientific expertise delivered on a global scale by our 50,000 immensely talented professionals in more than 100 markets,” said IMS Chairman and CEO Ari Bousbib. “Our combined business will accelerate growth, yield greater operating efficiencies and provide more flexibility for future expansion.”
“This combination addresses life-science companies”™ most pressing needs: to transform the clinical development of innovative medicines, demonstrate the value of these medicines in the real world, and drive commercial success,” added Quintiles CEO Tom Pike. “We are bringing together two best-in-class leaders. I”™m confident that together we will make our clients even more successful.”
Bousbib will be chairman and chief executive officer of Quintiles IMS, while Pike will serve as vice chairman.
Combined reported revenue for the two companies in 2015 was $7.2 billion.
The companies expect to achieve annual cost savings of $100 million, and to add 100-200 basis points to their annual growth rate by the end of the third year after the deal”™s close, which is expected to occur in the second half of this year.
