Syneos To Be Acquired By Private Investment Consortium For $7.1B, Q1 Earnings Beat Expectations

Author: Nabaparna Bhattacharya | May 10, 2023 09:01am

• Syneos Health Inc (NASDAQ:SYNH) reported the first quarter of FY23 revenues of $1.357 billion, beating the analyst consensus of $1.28 billion. Revenues inched up 1.5% year over year. 
• The integrated biopharmaceutical solutions company posted an adjusted EPS of $0.75, -25.7% Y/Y, beating the analyst consensus of $0.66.
• The company has entered into a definitive agreement worth $7.1 billion to be acquired by a private investment consortium consisting Elliott Investment Management, Patient Square Capital, and Veritas Capital. The deal value represents $43 apiece in Syneos Health, in cash. 
• Also Read: Syneos Health Close To Being Acquired For $7B - Elliott, Patient Square and Veritas Investment Consortium Lead Deal
• The acquisition includes Syneos Health's outstanding debt. As of March 31, 2023, the company's long-term debt was $2.61 billion. 
• The deal value represents a 24% premium to Syneos Health's unaffected closing stock price on February 13, 2023, the last trading day before media speculation regarding the company started.
• Completion of the transaction is expected in the second half of 2023. Upon completion of the transaction, Syneos Health will become a private company, trading no longer on the bourses.
• "The Syneos Health Board of Directors unanimously determined that this all-cash transaction maximizes value for our shareholders and is in the best interests of the Company and all stakeholders," said John Dineen, Chair of the Syneos Health Board of Directors.
• Price Action: SYNH shares are up 8.74% at $41.81 during the premarket session on the last check Wednesday.

Posted In: SYNH