Thermo Fisher Scientific has agreed to acquire PPD, a contract research organization, for $17.4 billion plus the assumption of approximately $3.5 billion of net debt.

PPD provides a range of clinical research and laboratory services for drug development. In 2020, the company generated revenue of $4.7 billion and has approximately 26,000 employees globally.

Thermo Fisher expects to realize total synergies of approximately $125 million by year three following close, consisting of approximately $75 million of cost synergies and approximately $50 million of adjusted operating income benefit from revenue-related synergies.

The transaction, which is expected to be completed by the end of 2021, is subject to the satisfaction of customary closing conditions, including the receipt of applicable regulatory approvals. Upon close of the transaction, PPD will become part of Thermo Fisher’s Laboratory Products and Services Segment.

In addition to board approval, shareholders holding in aggregate approximately 60% of the issued and outstanding shares of common stock of PPD have approved the transaction by written consent. No further action by other PPD shareholders is required to approve the transaction.

Source: Thermo Fisher Scientific