Syneos Health Close To Being Acquired For $7B - Elliott, Patient Square and Veritas Investment Consortium Lead Deal

A group of investors, including Elliott Investment Management, Patient Square Capital, and Veritas Capital, is close to acquiring Syneos Health Inc SYNH for more than $7 billion, including debt.

Bloomberg News first reported the news of the investment consortium's talks with Syneos.

The consortium will pay about $43 per share in cash for Syneos, representing a 14% gain to Syneos' value on February 24, the last trading day before Reuters reported that the company was exploring a sale.

The relatively small premium reflects Syneos' challenges in winning new business. Syneos Chief Executive Michelle Keefe said in February that the company had "work to do" to improve its win rates among small drug firms. 

Many clients have cut spending as they face challenges raising funds in a post-COVID-19 market downturn.

The sources said the deal could be announced as early as Wednesday. Syneos will be reporting first quarter 2023 earnings today. 

Bloomberg noted that the potential deal would add to a wave of transactions involving companies that support drug development. Thermo Fisher Scientific Inc TMO in 2021 purchased PPD Inc, a provider of clinical and research services, for $17.4 billion. 

A few months later, buyout firm EQT AB and Goldman Sachs Asset Management agreed to acquire Parexel for $8.5 billion.

Price Action: SYNH shares are up 12.70% at $43.35 during the premarket session on the last check Wednesday.