Join        Login             Stock Quote

ICON (ICLR) To Buy Clinical Trial Services Business Of Cross Country Healthcare (CCRN)

 February 04, 2013 07:09 AM

(By Balaseshan) ICON Plc (NASDAQ: ICLR), a provider of outsourced development services, has agreed to buy the clinical trial services business of Cross Country Healthcare Inc. (NASDAQ: CCRN) to enhance its presence in pharmacovigilance and drug safety consulting.

ICON is buying the clinical trial services business for a cash consideration of $52 million, plus an earn-out of up to $3.75 million related to certain performance-based milestones.

Cross Country Healthcare said it intends to use a portion of the net proceeds from this transaction to retire all of its outstanding bank debt. Cross Country said it decided to divest the business as a result of an extensive review of its operations and the changing landscape in the pharmaceutical research and development outsourcing industry.

[Related -5 Favorites For Foreign Exposure]

"Selling this business is a logical step as we narrow our focus and concentrate our resources on our core nurse and allied staffing and our physician staffing businesses, which pro forma would represent about 90% of our consolidated revenue," said Joseph Boshart, Chief Executive of Cross Country.

Cross Country's Clinical Trial Services Division includes ClinForce and Assent Consulting, whose services include contract staffing, permanent placement and functional service provision. The division also includes AKOS, a U.S. and European Union provider of pharmacovigilance and drug safety services.

[Related -Icon (ICLR): Pfizer Projects To Drive Sales Growth In Next 2 Years]

ClinForce and Assent will be combined with ICON's FSP division, DOCS, creating a leader in global resourcing and FSP, while AKOS will enhance the services offered by ICON's medical and safety services team. The transaction is expected to close within the next 30 days.

"The ClinForce and Assent businesses will significantly expand our resourcing and FSP capabilities in the US and, when combined with DOCS strong European footprint and growing emerging markets presence, gives us the ability to deliver truly global resourcing solutions. Additionally, AKOS enhances our expertise in the areas of pharmacovigilance and drug safety consulting, which are increasingly important capabilities required by our clients," said Ciaran Murray, CEO at ICON.

ICLR closed Friday's regular session down 0.03% at $29.30, while CCRN ended down 0.88% at $5.60.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.