Thermo Fisher Scientific has concluded its previously announced acquisition of clinical research services provider PPD in a deal valued at $17.4bn in cash, assuming the net debt of nearly $3bn.
In April, Thermo Fisher entered a definitive agreement to acquire PPD for $47.50 for each share.
PPD provides services to the biotech and biopharma industry. It will now become part of the Laboratory Products and Services unit of Thermo Fisher.
With the takeover, Thermo Fisher intends to provide a complete suite of services across the clinical development spectrum, comprising scientific discovery, safety, efficacy and healthcare outcome assessment, handling trial logistics, as well as the development and production of the therapeutics.
Thermo Fisher noted that the deal is anticipated to offer $1.50 to its adjusted earnings per share next year.
The company expects to realise nearly $125m in overall synergies by three years following the acquisition.
This will comprise cost synergies of nearly $75m and around $50m of adjusted operating income gains from revenue-linked synergies.
Thermo Fisher Scientific chairman, president and CEO Marc Casper said: “We are very excited to officially welcome our PPD colleagues to Thermo Fisher Scientific.
“Expanding our value proposition for our biotech and pharmaceutical customers with the addition of PPD’s leading clinical research services advances our work in bringing life-changing therapies to market, benefitting patients around the world.”
The takeover is anticipated to aid Thermo Fisher in becoming an expert in the clinical research services industry and will help bolster its offering.
It will bring an established drug development platform, patient enrolment expertise and robust laboratory services.