Syneos Health, Inc. , an integrated biopharmaceutical solutions organization, announced that it has entered into a definitive agreement to be acquired by a consortium of private investment firm affiliates composed of Elliott Investment Management, Patient Square Capital, and Veritas Capital for $43.00 per share in cash in a transaction valued at approximately $7.1 billion, including outstanding debt. The purchase price represents a 24% premium to Syneos Health’s unaffected closing stock price on February 13, 2023, the last trading day prior to media speculation regarding the deal. Syneos provides clinical research and commercialization services to the pharmaceutical industry, with a specialty in late-stage clinical trials.
Pharmaceutical Services EBITDA Multiples
According to the fairness opinion prepared in connection with the transaction, Syneos was projected to generate EBITDA of $731 million off of $5.154 billion revenue, implying multiples of 1.4x revenue and 9.7x EBITDA. The deal came after a 12.4% reduction in backlog of contracts for providing clinical research to drug developers led to a 52% stock price plunge in 2022.
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The Scope Research Healthcare M&A Valuation Database currently has financial details for 132 pharmaceutical services (CRO, CDMO, consulting, and transportation) deals going back to 2010, 109 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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