Icon to buy PRA Health Sciences in $12bn deal

US outsourced drug and device developer Icon has agreed to buy PRA Health Sciences in a $12bn cash and stock deal.

The consideration represents a premium of about 30% to PRA’s closing share price on Tuesday.

Icon said the deal "brings together two high-quality, innovative and growing organisations with similar cultures and a shared focus on high quality and efficient clinical trial execution from Phase 1 to post-approval studies".

The transaction is expected to deliver double-digit accretion in the first full year and grow to 20%+ thereafter, Icon said, driven by growth momentum, estimated annual run-rate cost synergies of $150m, and the combined effective tax rate decreasing to 14%, both to be realised in approximately four years.

Icon’s chief executive officer, Dr. Steve Cutler, said: "The combined company will create a new paradigm for accelerating clinical research and bringing new medicines and devices to market. Both Icon and PRA have track records of robust growth and performance and we are ready to build on this unrivalled position of strength, utilising the outstanding talent in both organisations.

"With broader and deeper operational scale combined with innovative technology and real world data solutions, we will enable all customers to reduce their development time and cost. We will be the leading provider of de-centralised and hybrid trial solutions through the integration of our data capabilities, health platforms and Accellacare site network."

News of the deal came alongside Icon’s fourth-quarter and full-year 2020 results.