Pamplona Capital Management has struck a deal to buy drug testing company Parexel for about $5bn, including debt, following pressure from activist investor Starboard Value to explore a sale.Pamplona, a New York-based private equity group, is paying $88.10 per Parexel share. The all cash offer represents a near 28 per cent premium to Parexel’s closing price on May 5, a day before reports broke that the company was looking to sell itself.
The offer also gives Parexel an equity value of around $4.47bn.
Parexel, which helps drug companies conduct clinical research, has come under fire from Starboard Value earlier this year. The activist group took a 5.7 per cent stake and has put pressure on management to explore a sale, arguing that the company’s profit margins have consistently lagged those of its peers.