UPDATE: Citi Downgrades eResearch Technology; Removes PT
According to a research report published earlier today, Citi has downgraded eResearch Technology (NASDAQ: ERT) from Buy to Neutral, and has removed its $6 PT.
In the report, Citi commented, “eResearch Technology (ERT) announces today that it is being taken private by middle market private equity firm Genstar Capital, for $8.00 per share in cash, with the transaction valuing the company at about $400 million. The offer price represents only a 5% premium to yesterday's close price, as news of a pending deal had previously been reported on. Genstar has various other life science/CRO assets that could be leveraged and bundled with ERT's offerings, enhancing the value of both assets.”
eResearch Technology is currently trading at $7.91.
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