Genstar acquires eResearch for $400 mln
eResearchTechnology (ERT)(NASDAQ:ERT) announced Tuesday that it will be acquired by affiliates of private equity firm Genstar Capital for around $400 million cash.
Based in Philadelphia, ERT provides technology and services that help medical device and drug companies interpret data related to cardiac safety.
Under the terms of the agreement, the proposed transaction would see Genstar pay $8.00 per share for ERT stock, a two percent premium over the stock's closing price of $7.84 on Monday.
The medical data company said the offer price represents a premium of approximately 38 percent over ERT's average closing share price for the 90 trading days ending on April 9, 2012 and 42 percent over the 52-week average.
ERT said its board of directors has unanimously approved the deal after a recommendation by a special committee of independent directors.
"We are pleased that this transaction appropriately recognizes the value of ERT as one of the leading vendors to the pharmaceutical industry, while providing our stockholders with an immediate cash realization for their investment in ERT," said the chairman of ERT's special committee of independent directors Elam M. Hitchner, III.
Shareholder approval is still needed and the transaction is expected to be completed during the third quarter.
"ERT is an attractive opportunity that fits with Genstar's outsourcing thesis within the Life Sciences & Pharmaceutical Services
sector. We are excited about helping the company evolve its offering and better serve its customers," said Genstar's managing director Robert Weltman.