NEWS5 November 2009

Investment funds to buy IMS Health in $5.2bn deal

M&A North America

US— Investment funds TPG Capital and the CPP Investment Board have agreed a $5.2bn deal to acquire healthcare researcher IMS Health.

The agreement, which will see IMS stockholders receive $22 per share, has been unanimously approved by the firm’s board of directors and is due to be completed – subject to shareholder approval – during the first quarter of 2010.

IMS CEO, David Carlucci (pictured) said today: “With the backing of world-class private equity partners, we will continue our focus on expanding into new markets, further improving the quality and depth of offerings we deliver to our clients, and playing a bigger role in the healthcare market.”

Jonathan Cosling, senior partner at TPG, said: “IMS Health has consistently demonstrated it is the definitive source of critical data and services to the evolving healthcare industry. We are pleased to join our long-time partner, CPP Investment Board, and a talented management team to continue the growth of this outstanding franchise.”

TPG Capital is the buyout arm of private investment firm TPG and manages assets worth around $45bn. The CPP Investment Board manages the Canada Pension Plan’s surplus funds. The value of the IMS deal includes the assumption of debt.

Rumours that IMS was the target of a possible takeover first surfaced in mid-October, and the following day the firm announced that it had formed a special committee to look into “a variety of strategic alternatives”.

The price per-share represents a premium of 50% over the closing price of IMS stock on 16 October, the day before the rumours were reported.

IMS came close to being bought by VNU in 2005, which is now the Nielsen Company, but the deal collapsed after VNU shareholders opposed it.