Thermo Fisher Scientific has completed its previously announced acquisition of clinical research services provider PPD in a deal valued at $ 17.4 billion in cash, assuming net debt of nearly $ 3 billion.
In April, Thermo Fisher reached a definitive agreement to acquire PPD for $ 47.50 for each share.
PPD provides services to the biotechnology and biopharmaceutical industry. He will now be part of Thermo Fisher’s Laboratory Products and Services unit.
With the acquisition, Thermo Fisher intends to provide a full range of services across the spectrum of clinical development, including scientific discovery, safety, efficacy and evaluation of healthcare outcomes, management of the logistics of the trials, as well as the development and production of the therapeutics.
Thermo Fisher noted that the deal is expected to offer $ 1.50 to its adjusted earnings per share next year.
The company expects to achieve nearly $ 125 million in overall synergies within three years of the acquisition.
This will include cost synergies of nearly $ 75 million and approximately $ 50 million of adjusted operating income gains from revenue synergies.
Thermo Fisher Scientific President and CEO Marc Casper said, “We are very pleased to officially welcome our colleagues from PPD to Thermo Fisher Scientific.
“Developing our value proposition for our biotech and pharmaceutical customers with the addition of PPD’s premier clinical research services advances our work to bring life-changing therapies to market, to benefit patients around the world. “
The takeover is expected to help Thermo Fisher become an expert in the clinical research services industry and will help strengthen its offering.
It will bring an established drug development platform, patient recruitment expertise and strong laboratory services.