Marketing research giant IMS Health will be acquired by private equity firm TPG Capital and the Canadian Pension Plan Investment Board, a Toronto-based investment management organization, for $5.2 billion.
The acquisition also covers IMS Health's outstanding debt, equaling roughly $1.3 billion as of September 30, according to third quarter reports. Debt financing will be provided by an amalgam of Goldman, Sachs & Co. affiliates, according to a release.
A spokesperson for IMS Health said the company will continue operating under its flagship name – IMS Health – adding that the transaction reflects a confidence in the company's business model.
IMS Health “will continue our focus on expanding into new markets, further improving the quality and depth of offerings we deliver to our clients, and playing a bigger role in the healthcare market,” David Carlucci, IMS chairman and CEO, said in a statement.
The acquisition, subject to the approval of IMS shareholders, regulatory approvals and customary closing conditions, is expected to be completed by the end of the first quarter, 2010.
IMS Health's third quarter revenue was $540.8 million – down from $573.7 during the same period last year. However, that figure represents a 3% growth over second quarter earnings in 2009, according to third quarter reports.