Buy out firms TPG, CPP to acquire IMS Health for $5.2 billion

Health care market research and consulting company IMS Health yesterday agreed to sell itself to private equity firms TPG Capital and the CPP Investment Board in a transaction valued at $5.2 billion, including debt.

Operating for more than 50 years and having offices in more than 100 countries, IMS is the world's leading provider of market intelligence to the pharmaceutical and healthcare industries. With $2.3 billion in 2008 revenue IMS offers leading-edge market intelligence products and services and consulting and services solutions that improve productivity and the delivery of quality healthcare worldwide.

Stockholders of Norwalk, Connecticut-based IMS will receive $22.00 cash for each share of IMS common stock they own, representing a premium of approximately 50 per cent over the closing share price on Friday, 16 October 2009, the last trading day prior to public speculation that IMS was considering its strategic alternatives.

The transaction has fully committed financing, consisting of a combination of equity to be invested by TPG and CPPIB and debt financing to be provided by certain affiliates of Goldman, Sachs & Co., including its principal loan and mezzanine funds.

The transaction includes Fort Worth, Texas-based TPG and Toronto-based CPPIB taking on IMS debt of $1.34 billion. The company had cash and equivalents of $301.7 million as of 30 September, according to IMS statement last month.

''This transaction enables our shareholders to realisc substantial value from their investment in IMS with an immediate cash premium, while at the same time strengthening our position to capture long-term growth opportunities,'' said IMS chairman and CEO David Carlucci.