On Wednesday, contract research business Syneos Health Inc. (SYNH.O) announced that Elliott Investment Management, Patient Square Capital, and Veritas Capital would purchase it for $7.1 billion, including debt.
Syneos shares surged 10.4% pre-market.
Syneos said the consortium would pay $43 per share in cash, 12% over the company’s previous closing of $38.45.
Syneos has trouble acquiring new business since many of its clients, including medium-sized biotechs, have slashed expenditures due to the post-COVID-19 market slowdown.
The deal comes days after Warburg Pincus and Advent International bought Baxter International’s (BAX.N) biopharma solutions segment for $4.25 billion.
PE companies have been investing in the hazardous drug development business with agreements that compensate for the unpredictability.
