Deals and IPOs

Quintiles, IMS Health agree to merge

Contract medical research provider Quintiles Transnational Holdings and health care information company IMS Health Holdings said they would merge in a deal valued at $9 billion.

The combined company, with a market value of nearly $18 billion, will offer drug and medical device makers services ranging from running clinical trials to tracking sales once a product has hit the market.

IMS Health shareholders will receive 0.384 shares of Quintiles for each share held, valuing each IMS Health share at $26.53. IMS Health shares closed at $26.64 on Monday.

The offer values the deal at about $9 billion, based on 339.3 million IMS diluted shares outstanding as of Dec. 31, according to Reuters data.

After the deal, IMS Health shareholders will own about 51.4 percent of the combined company, while Quintiles shareholders will own the rest.

The new company will be called Quintiles IMS Holdings Inc and led by IMS Health Chief Executive Ari Bousbib. Quintiles CEO Tom Pike will become vice chairman.

IMS Health, which provides market and sales research services to the health care industry, was advised by Goldman Sachs. Its legal adviser was Weil, Gotshal & Manges.

Quintiles' financial adviser was Barclays. Its legal advisers were Bryan Cave and Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan.