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PAREXEL International Corporation
announced today that on December 21, 2012, the Company acquired
all of the outstanding equity securities of Liquent, Inc., a leading global
provider of Regulatory Information Management (RIM) solutions. Liquent
provides an integrated platform of software solutions for regulatory
submissions and product registration management, as well as a range of
complementary business process outsourcing capabilities. Liquent was founded
in 1994, and its clients include more than 200 biopharmaceutical and life
sciences companies. With headquarters in Horsham, Pennsylvania, and
additional offices in the United Kingdom, Germany and India, the Company
employs nearly 300 individuals. Prior to the sale, Liquent was owned by
Marlin Equity Partners. The purchase price was approximately $72 million
(which was adjusted at closing to reflect Liquent's cash, indebtedness and
working capital balances at closing), and was funded through the expansion of
one of the Company's existing credit facilities.
In conjunction with the completion of the acquisition of Liquent and other
factors covered in this release, PAREXEL also updated its forward-looking
financial guidance for the second quarter of Fiscal Year 2013 (ending December
31, 2012) and for the full Fiscal Year (ending June 30, 2013). PAREXEL has
increased its forward-looking service revenue guidance for the second quarter
as a result of accelerated project performance, and for the full Fiscal Year
as a result of the positive contributions from the Liquent acquisition, as
well as better overall performance. Including these factors, the Company
anticipates reporting consolidated service revenue in the range of $415 to
$420 million for the second quarter of Fiscal Year 2013, and in the range of
$1.675 to $1.695 billion for Fiscal Year 2013 in its entirety. Of the
increase, the Liquent acquisition is expected to contribute a small amount of
service revenue in the second quarter and between $17 and $23 million in
service revenue during the second half of Fiscal Year 2013. Previously issued
consolidated service revenue guidance was $400 to $410 million for the second
quarter, and $1.630 to $1.660 billion for the Fiscal Year.
The Liquent acquisition is expected to have a dilutive effect on earnings per
share as reported under Generally Accepted Accounting Principles (GAAP) in the
range of $0.02 to $0.04 for Fiscal Year 2013, including the amortization of
intangibles and other costs. Excluding the amortization of intangibles and
other costs, the acquisition is expected to be accretive. In addition to the
impact from Liquent, the Company expects to have slightly better operating
performance. Taking into account the afore-mentioned factors, PAREXEL now
anticipates reporting GAAP diluted earnings per share in the range of $0.33 to
$0.34 for the second quarter of Fiscal Year 2013 and in the range of $1.32 to
$1.39 for Fiscal Year 2013. Adjusted earnings per diluted share are expected
to be between $1.36 and $1.43 for Fiscal Year 2013 (adjusted earnings per
diluted share is a non-GAAP measure that excludes the impact of certain items
that were recorded in the first quarter of Fiscal Year 2013 and reconciled to
GAAP in the Company's press release dated October 30, 2012 including the sale
of a building, a favorable adjustment to restructuring reserves, a charge
relating to a dispute, and one-time adjustments to deferred tax assets, but
does not include any items related to the acquisition of Liquent).
Previously issued guidance was for GAAP earnings per diluted share to be in
the range of $0.31 to $0.33 for the second quarter of Fiscal Year 2013 and in
the range of $1.30 to $1.40 for Fiscal Year 2013. For the full Fiscal Year,
adjusted earnings per diluted share had been expected to be in the range of
$1.34 to $1.44 (adjusted earnings per diluted share excluded the impact of the
special items that were recorded in the first quarter as referenced above).
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