Clarivate buys Piramal's healthcare analytics business for $950 million

MUMBAI: Piramal Enterprises Limited will sell Decision Resources Group (DRG) – its healthcare insights & analytics business to the US based Clarivate Analytics plc, for $950 million. PEL DRG Dutch HoldCo BV, a 100% subsidiary of PEL & the holding company for DRG, has signed a definitive agreement for the sale of DRG for $950 Million (includes $900 million on closing and $50 million to be received at the end of 12 months from the date of closing), the group said on Friday.

This transaction is subject to shareholder approval and is expected to be completed by end February, 2020.

PEL had initially invested $650 million in 2012 to acquire DRG, out of which $260 million was infused as equity. Piramal has achived a 2.3 times return on its initial equity investment in rupees terms, the statement added.

DRG – the data, analytics and insights business of the Piramal Group, specializes in enabling the pharma, biotech and medical technology companies to achieve commercial success in complex health markets with the creation of effective patient-centric commercial strategies.

With this acquisition, the over $5 billion Clarivate is expected to be well positioned in the $19 billion Life Sciences analytics market, which is enjoying double-digit growth, to support customers across the entire drug, device and medical technology lifecycle from research to outcome.

“This transaction demonstrates our continued commitment to create sustained long term value for all stakeholders,” said Ajay Piramal, Chairman, Piramal Group. Along with the ongoing equity capital raise in PEL, this transaction not only further strengthens the company’s balance sheet but also marks another step towards significantly unlocking value in future, he added.

“This is a milestone acquisition which doubles the size of our Life Sciences business, is accretive to our 2020 earnings and sets us up as an essential, end-to-end, industry-leading data and analytics provider in the highly attractive Life Sciences ecosystem,” said Jerre Stead, Executive Chairman and CEO, Clarivate Analytics.

Piramal Enterprises Limited has its a presence in financial services, pharmaceuticals and healthcare insights & analytics. PEL’s consolidated revenues were $1.9 billion in FY2019, with around 40% of revenues generated from outside India.


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