UPDATE: Citigroup Downgrades eResearch Technologies to Neutral

Citigroup lowers its rating on eResearch Technologies

to Neutral from Buy as the company is being taken private by Genstar Capital. Citigroup notes, "eResearch Technology (

) 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. Given the limited return to the offer price, we are changing our rating from Buy to Neutral." ERT closed at $7.90 a share yesterday.