Syneos Health is buying out midsized, late-stage focused contract research organization Synteract to help bolster its research services footprint.
About two years ago, INC Research and inVentiv came together in a $7.4 billion merger and rebranded as Syneos Health. But earlier this year, reports out by Reuters rumored that the services company was seeking a sale.
Then, the first wave of COVID-19 hit, and the rumors died down. Now, after a relatively quiet few months on the news front, the company is busting out a deal to buy the Research Triangle Park, North Carolina-based CRO.
It will tap Synteract’s work with emerging biopharmas, which includes work in oncology, rare and orphan diseases, neuroscience, dermatology and pediatrics.
Synteract’s focus is primarily on early-stage, pre-revenue biotechs, a segment in which Syneos Health “has growth opportunities”, according to a statement.
The CRO has had a busy few years, snapping up specialty pediatric CRO KinderPharm and contract researcher Cu-Tech in the past two years. Back in February, it also boosted its reach into the Asia-Pacific region and South Africa after snapping up specialty biometrics CRO Clindata’s human health biometrics division
Financial details of the buyout deal were not disclosed.
The deal will help Syneos get greater access to the biotech sector, which it notes “has shown no signs of slowing down, [with funding] remaining near all-time record highs.”
“The transaction provides significant revenue synergy opportunities, as Syneos Health brings scale and new capabilities to Synteract’s unique customer base while maintaining Synteract’s laser-focus on the emerging biopharma segment,” the company added.
When the deal is formally signed off by year-end, Synteract will maintain its brand, “led by strong management,” operating as a Syneos Health Business Unit. The company did not say whether it would be cutting any staff or the C-suite.
“Synteract is one of the leading mid-sized, late-stage-focused CRO platforms with global reach and an attractive focus on the highest growth customer segment in the CRO space fueled by near-record funding levels,” said Alistair Macdonald, chief of Syneos Health.
“With Synteract, we will strengthen our leadership across the entire SMID category while we continue to drive growth among large biopharma customers. Importantly, we share operating and cultural philosophies built around finding the best combination of product, process and technology to fuel innovation. I look forward to welcoming Synteract to the Syneos Health family, as we collectively work to change patients’ lives.”
Syneos’ shares were up 3% premarket Thursday morning on the news.
“Joining Syneos Health combines our emerging biopharma expertise and expands our differentiated delivery model,” added Steve Powell, CEO of Synteract. “We are excited to join the Syneos Health team, as they provide increased global scale, service breadth and the technology infrastructure that will drive continued growth. On behalf of our management team, I thank our dedicated employees and customers who have made this combination possible, as well as Amulet Capital Partners for their significant support as an investor over the last several years.”
Back in 2016, U.S. healthcare equity firm Amulet Capital Partners acquired the CRO, then known as SynteractHCR, now just Synteract.