ICON Scoops Up PRA Health Sciences In $12B Deal

ICON plc (NASDAQ: ICLR) has agreed to acquire PRA Health Sciences Inc (NASDAQ: PRAH) in a cash and stock transaction valued at approximately $12 billion.
The per-share consideration consists of $80 in cash and 0.4125 shares of ICON stock, representing approximately a 30% premium to PRAH’s closing price of 127.73 on Tuesday.
The acquisition will help the companies address the needs for de-centralized and hybrid trial solutions from a combination of mobile and connected health platforms, home health services, and wearables expertise.
The transaction is anticipated to be highly accretive, delivering double-digit accretion in the first full year and growing to 20%+ thereafter, with estimated annual run-rate cost synergies of $150 million.
Current PRA Chairman and Chief Executive Officer Colin Shannon, along with one additional board member, will join the ICON board after closing the transaction.
The deal is expected to complete in Q3 of 2021.
PRA shareholders will own approximately 34% of the combined company’s shares, and ICON shareholders will own the remaining 66%.
Price Action: ICLR closed 0.2% higher at $208.6, while PRAH closed 0.3% higher at $127.73 on Tuesday.