Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, May 19, 2023

Article Excerpt

SYNEOS HEALTH INC., $41.62, symbol SYNH on Nasdaq, is a provider of outsourced clinical drug development and commercialization services to pharmaceutical companies. It has two operating segments: Clinical Solutions (75% of revenue) and Commercial Solutions (25%). On May 10, 2023, Syneos announced that it had agreed to its acquisition by a consortium of investors for $43 a share. The transaction values Syneos at $7.1 billion. The buyers include activist investor Elliott Management, Patient Square Capital and Veritas Capital. Syneos had sought a buyer over the past few months after its small and mid-sized drug company customers cut their spending on outsourced drug development services. Several biotech companies have been cutting staff as they face funding squeezes. Syneos’s long-term debt of $2.6 billion is also high at 60% of its market cap. In the quarter ended March 31, 2021, revenue climbed 1.5%, to $1.36 billion from $1.34 billion a year earlier. Revenues were higher in North America and Asia, offset by lower sales in Europe,…