IMS Health, Quintiles to merge
DANBURY, Conn. — IMS Health on Tuesday announced a planned merger with Quintiles, a combination that will create Quintiles IMS Holdings with an enterprise value of more than $23 billion.
“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,” Quintiles CEO Tom Pike said. “We are bringing together two best-in-class leaders. I’m confident that together we will make our clients even more successful.”
Under the agreement, IMS Health shareholders will receive 0.384 shares of Quintiles common stock per IMs Health share. At the close of the merger, IMS Health shareholders will own 51.4% of the combined company’s shared, with Quintiles shareholders owning 48.6%.
The merger is aimed at improving clinical trial design and execution by combining IMS Health’s information solutions with Quintile’s product development skills. The companies expect to add 100-200 basis points to its combined annual growth rate and achieve annual run-rate cost savings of $100 million by the end of year three.
The combined company will keep dual headquarters in Danbury, Conn. and Research Triangle Park, N.C. IMS Health chairman and CEO Ari Bousbib will become chairman and CEO of Quintiles IMS, with Pike acting as vice chairman. The board will contain six IMs health appointees and six Quintiles appointees, with Dennis Gillings acting as lead director.
“Together our solutions will enable differentiation in the CRO market, advance Real-World Evidence capabilities, and deliver comprehensive commercial solutions for our clients. This powerful combination 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. Our combined business will accelerate growth, yield greater operating efficiencies and provide more flexibility for future expansion.”