Thermo Fisher Scientific Inc said it would acquire contract research firm PPD Inc for about $17.4 billion to expand its clinical research service business.
Under terms of the agreement, Thermo Fisher will acquire PPD for $47.50 per share - a premium of 10.6% to the closing price.
The transaction, which is for a total cash purchase price of $17.4 billion-plus the assumption of approximately $3.5 billion of net debt, is expected to be completed by the end of 2021.
The deal would be immediately and significantly accretive to Thermo Fisher's adjusted EPS, adding $1.40 in the first 12 months after close, the company said.
Barclays Capital Inc and Morgan Stanley & Co LLC are serving as financial advisers to Thermo Fisher, while J.P. Morgan Securities LLC is the financial adviser for PPD.
The Wall Street Journal had reported that Thermo Fisher was nearing a deal to acquire PPD.
Sourced from Reuters