The merger is expected to create a global biopharmaceutical solutions leader having combined net revenue of over $3.2bn. Approximately $100m is estimated to be realized annually in cost synergies.
It is anticipated that the combined entity likely to be in a position to become the second largest biopharmaceutical outsourcing provider.
The parties are also hoping to become one of the top three contract research organizations and the largest contract commercial organization in terms of net revenue post merger.
Their combination will bring together their respective end-to-end solutions into a comprehensive suite for the development and commercialization of biopharmaceutical compounds and biologics.
INC Research CEO Alistair Macdonald said: “Through this strategic combination we are bringing together two of the most innovative and respected players in the field to create a leading global biopharma solutions organization with a full suite of clinical and commercial solutions to address the needs of biopharmaceutical companies, patients, physicians and payers.
“The combination of INC Research and inVentiv will expand our global scale and add capabilities to grow our addressable market.”
Post merger, the combined company will be benefited by a complementary and diversified customer base from its founding organizations to help it become a leading service provider for all sizes of biopharmas.
inVentiv Health CEO Michael Bell said: “We believe this merger has significant client advantages as it deepens our scale, scope and therapeutic expertise.
“The combination also provides the opportunity to leverage INC Research’s Trusted Process – a proven methodology to accelerate success – which can improve the overall cost of development and time to market for our customers.”
The merger is likely to be closed in the second quarter of the year subject to customary approvals and conditions.
Macdonald will become the CEO of the combined company while Michael Bell will be its executive chairman. The combined entity will have a workforce of over 22,000 employees across 60 countries providing services to customers in over 110 countries.
Image: Contract research organizations INC Research and inVentiv to merge. Photo: courtesy of jk1991 / FreeDigitalPhotos.net.