Shareholders of pharmaceutical and healthcare consultants IMS Health have approved the previously announced acquisition by TPG Capital, LP, and the CPP Investment Board, in a deal valued at $5.2 billion, IMS Health announced this week.
The agreement was unanimously approved by the IMS board in early November. Under the agreement, IMS shareholders will receive $22 cash for each share of IMS common stock they own, which at the time of the Nov. 5 announcement represented a 50% premium over the closing share price on October 16, the last trading day prior to public speculation that IMS was considering its strategic alternatives.
The acquisition will be financed through a combination of equity to be invested by TPG and CPPIB, and debt financing to be provided by affiliates of Goldman, Sachs & Co.
"This transaction enables our shareholders to realize substantial value from their investment in IMS with an immediate cash premium, while at the same time strengthening our position to capture long-term growth opportunities," IMS Chairman/CEO David R. Carlucci said during the November announcement. "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."
With operations in more than 100 countries, IMS Health provides market intelligence to the pharmaceutical and healthcare industries. The company generated $2.3 billion in revenues in 2008.
TPG Capital is the global buyout group of TPG, a private investment firm with approximately $45 billion of assets under management. TPG Capital’s healthcare investments have included Axcan Pharma, Biomet, Fenwal, IASIS Healthcare, Quintiles Transnational, and Surgical Care Affiliates.
The CPP Investment Board invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 17 million Canadian contributors and beneficiaries. The CPP Investment Board invests in public equities, private equities, real estate, inflation-linked bonds, infrastructure, and fixed income instruments. Headquartered in Toronto, the CPP Fund totaled $116.6 billion in June 2009.