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IMS Health to be Sold for $5.2bn
Pharmaceutical research giant IMS Health has agreed to be sold to private equity firm TPG Capital and the Canada Pension Plan Investment Board (CPPIB) for $5.2bn.
 Last month, the Wall Street Journal published a report that claimed IMS Health was in talks with several private equity firms regarding selling the company. IMS Health then reported a 6% drop in third-quarter revenue to $540.8m, compared with $573.7m a year earlier.
Today it was confirmed that the firm has entered into a definitive agreement to be acquired by investment funds managed by TPG and the CPPIB. The deal was unanimously approved by the IMS Board of Directors.
Since the news of the potential sale broke two weeks ago, IMS Health shares have risen from $14.85 to $20.90 after trading opened today.
As part of the agreement, IMS shareholders will receive $22.00 cash for each share of IMS common stock they own, which represents a 50% increase on the closing share price on Friday October 16 2009 - the last trading day prior to speculation that IMS was considering the sale.
'This transaction enables our shareholders to realize substantial value from their investment in IMS with an immediate cash premium, while at the same time strengthening our position to capture long-term growth opportunities,' stated IMS Chairman and CEO David Carlucci.
'With the backing of world-class private equity partners, we will continue our focus on expanding into new markets, further improving the quality and depth of offerings we deliver to our clients, and playing a bigger role in the healthcare market,' he added.
Completion of the transaction is subject to approval of IMS shareholders, regulatory approvals and customary closing conditions and is expected to occur by the end of the first quarter of 2010.
Web site: www.imshealth.com .
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