An investment consortium, including Veritas Capital, has agreed to acquire Syneos Health Inc., a clinical research organization that provides services to the pharmaceutical industry. The consortium, which also includes Elliott Investment Management and Patient Square Capital, will pay $43.00 per share in cash, representing a 24% premium to the unaffected stock price. The acquisition is expected to close in the second half of 2021.
Syneos Health Inc.'s stock surged 19% in extended trading after the announcement of the acquisition. The company has a market capitalization of approximately $7.4 billion and reported revenue of $4.4 billion in 2020.
Veritas Capital is a private equity firm that specializes in investing in companies at the intersection of technology and government. The firm has a portfolio of companies that includes healthcare technology, aerospace and defense, and government services.
In a separate announcement, Veritas Capital announced that an affiliate of the firm has completed the acquisition of Perspecta Inc., a provider of information technology services to the U.S. government. The acquisition was valued at approximately $7.1 billion.
Veritas Capital CEO and Managing Partner Ramzi Musallam was recently inducted into the 2023 edition of the prestigious Wash100 Award. The award recognizes influential leaders in the government contracting industry.
The acquisition of Syneos Health Inc. is the latest in a string of acquisitions made by Veritas Capital in 2021. The firm also acquired two public companies earlier this year.
The healthcare industry has been a focus for Veritas Capital in recent years. The firm has made several healthcare-related acquisitions, including the acquisition of Athenahealth in 2018 for $5.7 billion.
The acquisition of Syneos Health Inc. is expected to strengthen Veritas Capital's position in the healthcare industry. The company provides a range of services to the pharmaceutical industry, including clinical trial management, commercialization services, and regulatory affairs.
The acquisition of Syneos Health Inc. is also expected to benefit from the ongoing trend of increasing investment in the healthcare industry. The COVID-19 pandemic has highlighted the importance of healthcare and has led to increased investment in the industry.
The healthcare industry has also been the focus of several high-profile acquisitions in recent years. In 2018, CVS Health acquired Aetna for $69 billion. In 2020, Teladoc Health acquired Livongo Health for $18.5 billion.
Veritas Capital's acquisition of Syneos Health Inc. is expected to be completed in the second half of 2021. The acquisition is subject to regulatory approval and other customary closing conditions.
In conclusion, Veritas Capital has joined an investment consortium with Elliott Investment Management and Patient Square Capital to acquire Syneos Health Inc. The acquisition is expected to strengthen Veritas Capital's position in the healthcare industry and benefit from the ongoing trend of increasing investment in the industry. The acquisition is also expected to be completed in the second half of 2021, subject to regulatory approval and other customary closing conditions.
