inVentiv will cancel its planned IPO this summer after receiving a major investment from buyout firm Advent as it joins Thomas H. Lee Partners in having an equity stake in the CRO and biopharma services company.
Sources speaking to Reuters last week believed the company was set to be sold completely, but the final deal is a little more nuanced, seeing Advent come in and share ownership of the company 50-50.
InVentiv is now valued at $3.8 billion on a cash-free, debt-free basis. The deal, exact financial details of which have not been made public, is set to be finalized by the end of the year.
“We’re pleased to have two preeminent private equity firms--THL and Advent--backing our unique biopharma outsourcing model,” said Michael Bell, chairman and CEO of inVentiv Health, in a release.
“It’s a $250 billion market with tremendous potential. With THL’s strategic support we have realized significant growth over the last several years. We’re looking forward to adding Advent’s investment, operational and healthcare sector expertise. This will allow us to realize our full potential so we can better serve the biopharmaceutical industry in navigating an increasingly complex scientific and regulatory environment.”
John Maldonado, an MD at Advent, added: “We have long viewed the large and growing pharmaceutical outsourcing industry as one of the most attractive segments in healthcare. inVentiv Health is transforming into a global, full-service professional services organization that is uniquely positioned to serve its clients’ variety of needs and we believe that the company’s expertise, combined with our operational resources and THL's continued involvement, will enable inVentiv Health's continued success moving forward.”
A spokesman for the company told FierceCRO that Advent was not looking to make any changes to the CRO’s business model and was investing because of the opportunities it sees for growth from its long-term biz plan.
Given the investment, the company confirmed to FierceCRO that inVentiv Group Holdings would now not be seeking an IPO next month--as it planned to back in a SEC filing from April--in which it could have raised up to $500 million.
- check out the release