IMS sells out to investment funds for $5.2 billion

Leading provider of market intelligence to the pharmaceutical and health care industries, IMS, today announced that it has entered into a definitive agreement to be acquired by investment funds managed by TPG Capital and the CPP Investment Board in a transaction with a total value of $5.2 billion, including the assumption of debt.

IMS had cash and equivalents of $301.7 million, and total debt of $1.34 billion as of September 30, according to a statement last month. It generated global revenues of $2.3 billion last year.

Shareholders of IMS, which announced on October 20 that it had hired advisers in anticipation of a possible transaction, are getting $22 per share under the deal, marking a 31% premium to the stock's closing price of $16.81 on November 5. Shares were up nearly 24% in afternoon trading, having earlier set a new 52-week high of $21.09 on the news.

The transaction has fully committed financing, consisting of a combination of equity to be invested by TPG and CPPIB and debt financing to be provided by certain affiliates of Goldman, Sachs, including its principal loan and mezzanine funds.