Investment consortium nears deal for Syneos Health – sources

By Anirban Sen

NEW YORK (Reuters) – A consortium comprising Elliott Investment Management, Patient Square Capital and Veritas Capital is nearing a deal to acquire Syneos Health (NASDAQ:) Inc, a provider of clinical research to drug developers with a market value of $4 billion, people familiar with the matter said.

While the price that the consortium is paying for Syneos could not be learned, the company’s shares have risen over 20% since Reuters first reported on Feb 27 that Syneos was exploring a potential sale.

The sources requested anonymity because the matter is confidential. Syneos, Elliott, and Veritas did not immediately respond to requests for comment. Patient Square declined to comment.

Bloomberg News first reported the news of the investment consortium’s talks with Syneos. Shares of Syneos were up about 19% in after-market trading.

Based in Morrisville, North Carolina, Syneos helps pharmaceutical companies with clinical trials and to market their drugs.

Syneos, which carries a debt pile of nearly $3 billion, was created in 2017 by INC Research Holdings Inc ‘s acquisition of inVentiv Health Inc for $7.4 billion, including debt.

INC Research changed its name to Syneos in 2018. The deal buoyed the company by giving it scale and broadening its offerings for the outsourcing of the development and commercialization of drugs.

Syneos reported a total backlog for contracts of $6.8 billion as of the end of 2022, down from $7.5 billion as of the end of 2021.

There has been a wave of consolidation among contract research organizations seeking to lower costs, amass more clinical trial data and win customers.

Most recently, Thermo Fisher Scientific Inc (NYSE:) acquired PPD (NASDAQ:) Inc for $17.4 billion and Icon (NASDAQ:) Plc took over PRA Health Sciences (NASDAQ:) Inc for $12 billion.