IMS Health Inc., which is the world’s leading provider of market intelligence and market research to the pharmaceutical and health-care industries, has agreed to be acquired for $5.2 billion, including the assumption of debt.  The agreement calls for IMS shareholders to receive about $4 billion – $22 cash for each share of IMS common stock – a 31 percent premium over November 4th close.  

The acquirers are private-equity firm TPG Capital and the investment board of the Canada Pension Plan.

The deal with TPG Capital and the CPP Investment Board, which invests funds not immediately needed by the Canada Pension Plan, is expected to close by the end of the first quarter of 2010.  The cash portion of the deal represents the biggest leverage buyout this year based on data from Thomson Reuters.

IMS Health, which has operations in more than 100 countries, had $2.3 billion in 2008 revenue. The company last month reported a third-quarter loss because of restructuring costs and said revenue slid 6 percent to $540.8 million.  On October 20th IMS announced that it was exploring a variety of strategic options and had retained financial advisors.    Source:  Company Press Release

Comment:  If nothing else helps the last resort is always financial engineering!  Perhaps private equity will have better luck!

BIIA Newsletter November – December 2009 Issue