Syneos Health Is Being Acquired For $7.1 Billion By PE Firms

(CTN News) – Syneos Health announced Wednesday morning that it had been acquired for $7.1 billion by a consortium of private equity firms.

Elliott Investment Management, Patient Square Capital, and Veritas Capital are purchasing Syneos Health at a premium of 24% over the stock’s closing price on February 13.

At a special meeting scheduled for later this month, Syneos Health’s board of directors unanimously approved the deal. The board intends to recommend that shareholders approve the transaction.

It is anticipated that the transaction will close in the second half of the year, subject to the approval of the Syneos Health shareholders, as well as other customary closing conditions and regulatory approvals.

In a statement, John Dineen, chair of the Syneos Health Board of Directors, stated that this agreement is the outcome of a comprehensive review of Syneos Health’s available opportunities, including interest from multiple parties with the assistance of independent financial and legal advisors.

According to the Syneos Health Board of Directors, this all-cash transaction maximizes shareholder value and is in the best interests of all stakeholders.

In the event that the MM+M Agency 100 honoree is approved, the company will become a private company and will be delisted from the Nasdaq. North Carolina would remain the headquarters of Syneos as part of the proposed acquisition.

As Syneos Health’s C-suite has seen a number of changes in 2023, the company has had a busy few months.

As of July 1, Michael Bonello will replace Jason Meggs, who resigned in January. In early April, Jeanine O’Kane became president of Syneos Health Communications and Shauna Keough became president of U.S. Public Relations.

Elliott and Veritas also acquired health software-as-a-service company Athenahealth in 2018 for $5.7 billion before flipping it in 2022 for $17 billion.

Veritas CEO Ramzi Musallam says the company will invest in Syenos Health and enhance its ability to provide innovations worldwide.

Additionally, Syneos Health released its latest earnings report, showing a 1.5% increase in revenues to $1.3 billion. CEO Michelle Keefe said she was encouraged by the financial results and the progress made on the recovery plan, but the earnings call was cancelled because of the pending transaction.

“We remain committed to our strategic long-term growth priorities, driven by our relentless focus on customers and accelerated investments in transformation and profitability initiatives,” she said.

With our technology investments, we are able to deploy ‘fit for purpose’ solutions specific to the needs of each customer, anchored by our collaborations with Microsoft and KX.”

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