Model N (NYSE: MODN), a leader in revenue optimization and compliance for pharmaceutical, medtech, and high-tech innovators, announced that it has entered into a definitive agreement to be acquired by Vista Equity Partners. The deal is for $30/share in an all-cash transaction valued at approximately $1.25 billion. The purchase price represents a premium of approximately 23% over Model N’s 30-trading-day volume weighted average share price as of the close on January 10, 2024, the day prior to the Model N Board of Directors authorizing its financial advisor to contact potential acquirors.
Pharma / Life Sciences Consulting EBITDA Multiples
According to Model N's Q4 earnings release, 2023 revenue and EBITDA were $249.5m and $42.9m, respectively, implying trailing multiples of 5x revenue and 29.1x EBITDA. FY 2024 guidance is for revenue within the range of $260m to $263m and EBITDA within the range of $48m to $51m. Using the mid-points, the deal works out to 4.8x forward revenue and 25.3x forward EBITDA, which is on the high end of historical multiples for pharmaceutical and life sciences focused consulting firms.
Multiples in the segment have generally creeped up over time:
Pharmaceutical Services M&A Deal Volumes
The deal comes amid increasing pharma / life sciences consulting M&A announcements:
Other Pharmaceutical Services Deals
Read Scope Research's take on other recent pharmaceutical services M&A transactions:
About Scope Research
The Scope Research Healthcare M&A Valuation Database currently has financial details for 136 pharmaceutical services (CRO, CDMO, consulting, and transportation) deals going back to 2010, 112 of which include reported EBITDA multiples. The pharma services data can be purchased individually, while our affordable annual subscriptions provide access to all of our healthcare M&A databases and segments, updated continuously.
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