Pamplona Capital to buy Parexel in $5bn deal

Biopharmaceutical services provider Parexel International Corp has agreed to be bought by Pamplona Capital Management for $88.10 a share, in a deal valued at around $5bn including Parexel's debt.

The purchase prices represents a 28% premium to Parexel's closing price on 5 May, which was the last trading day before any market speculation regarding a deal emerged.

Josef von Rickenbach, chairman and chief executive officer of Parexel, said: "Today’s announcement is the culmination of a comprehensive review of the opportunities available to the company, including interest solicited and received from multiple parties with the assistance of independent financial and legal advisors.

"Having considered these opportunities, the Parexel board of directors unanimously determined that this all-cash transaction and the significant, certain value it provides is in the best interest of Parexel shareholders, as well as our company."

The deal, which has been unanimously approved by the board of directors of both companies, is expected to close early in the fourth quarter of this year and once the transaction is completed, Parexel will become a privately-held company.

At 1250 BST, Parexel shares were up 4.4% to $87.65 in pre-market trade.