NEWS16 December 2020

Kantar to sell Health division

Healthcare M&A News North America UK

UK – Kantar has entered into an agreement for the sale of its global Health division to US healthcare technology company Cerner in an all-cash deal worth $375m.

Kantar’s Health division, headquartered in New York, employs around 600 people across the US, Europe, Asia-Pacific and Latin America.

The division’s syndicated data services include CancerMPact, Claritis and the National Health & Wellness Survey.

Cerner is a global health information services business which applies data in life sciences, pharmaceuticals and healthcare.

The agreement comes a year after WPP completed the sale of 60% of Kantar to private equity firm Bain Capital. In July, Kantar sold its employee insights business to employee survey and people analytics firm Perceptyx.

A Kantar spokesperson confirmed there would be no job losses as a result of the sale.

Cerner has a six-month licence on the Kantar Health name and the new branding for the business will be announced once its integration into Cerner is complete.

Ian Griffiths, deputy chief executive and chief financial officer, said: “With its leadership in ‘real world evidence’ and therapeutic expertise, especially in oncology and rare diseases, the growth opportunities of the division will be best realised as part of a healthcare specialist.

“As part of Cerner, the Health division will enable a step-change in Cerner’s data analytics strategy and capabilities, providing an increased impact on health outcomes for patients around the world.”

Griffiths added that the sale would allow Kantar to increase its focus on its “identified growth priorities”.

Through the acquisition, Cerner aims to create a data insights and clinical research platform combining expertise and de-identified data to advance clinical research development.

It will also strengthen Cerner’s network of clients, the Learning Health Network, which offers health systems access to a network of de-identified data resources.

Donald Trigg, president of Cerner, said: “Kantar Health has incredible health economics and medical affairs expertise, differentiated real-world data assets and strong relationships with the world’s leading life science companies. It offers us an amazing opportunity to drive cross-industry collaboration that can change health outcomes around the world.”

Lynnette Cooke, chief executive of Kantar Health, said: “We are excited about this next chapter, where our real-world evidence and commercial data assets will be powered by Cerner. There is a strong cultural fit between the two organisations, grounded by our shared vision to increase access and affordability for patients around the world.”

The proposed transaction is expected to complete during the first six months of 2021.

The deal is subject to completion of shareholder, legal and regulatory approvals and the outcome of employee information and employee representatives’ consultation processes.

@RESEARCH LIVE

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