Drug trials services company Quintiles Transnational announced this morning it has agreed a $14.50-per-share management buy-out offer from its chairman.
Under the deal Quintiles is valued at $1.7 billion and the offer price represents a 19 per cent premium on yesterday's closing price of $12.19.
The company also confirmed it has signed a merger agreement with Pharma Services, founded by Mr Dennis B Gillings, chairman of the board and founder of Quintiles and One Equity Partners, the private equity arm of Bank One.
Today's announcement follows an $11.25-a-share offer from Dr Gillings last October which was rejected for being under the $1.62 billion in sales the company reported in 2001.
The transaction, which is anticipated to be completed later this year, is subject to Pharma Services' completion of its committed financing and customary conditions, including regulatory and Quintiles' shareholder approvals.
The Quintiles board of Directors, excluding Dr. Gillings and Mr Chester Douglass, unanimously approved the transaction.
"I'm pleased by the Board's unanimous decision to accept Pharma Services' offer," Dr. Gillings said. "I have personal confidence in the future of Quintiles. While this transaction is not yet complete, and requires shareholder approval, the Board's decision is a significant step."
Agencies