Icon buys services firm for $52m
Dublin-based clinical trials company Icon has acquired a US healthcare company in a deal worth $52 million (€38 million).
Icon, which provides clinical trials to the pharmaceutical and medical device industries, will pay $52 million in cash for the clinical trial services division of Cross Country Healthcare.
The business provides contract staffing to healthcare companies through its ClinForce and Assent Consulting units, which will come under Icon’s contract staff business Docs following completion of the deal. As part of the deal Icon will also take over Akos, a division of the firm which provides drug safety services in the US and EU. The vendors stand to make up to a further $3.75 million in earn-out payments, dependent on certain targets being met.
“The demand for flexible resourcing solutions continues to grow as biopharma companies employ a range of outsourcing models to meet their development goals more efficiently,” Icon chief executive Ciaran Murray said.
The deal, which is expected to close in the next month, is the latest in Icon’s expansion drive. Icon boosted its presence in Asia in 2012, with the buyout of Chinese research group BeijingWits.
“Business growth has predominantly been organic but acquisitions have played a part to fill in on a geographic basis where we feel we’ve had a gap,” said Simon Holmes, executive vice-president of investor relations and corporate development.
The announcement coincided with a visit from Minister for Health James Reilly, who took a tour of the company’s Dublin laboratory yesterday.