ICON acquisition creates world-leading healthcare intelligence and clinical research organisation

Rhea-AI Summary

ICON plc (NASDAQ: ICLR) has completed its acquisition of PRA Health Sciences, forming a combined entity with 38,000 employees across 47 countries. The merger aims to create a leading healthcare intelligence and clinical research organization, enhancing clinical trials and accelerating drug development through advanced technology and diverse patient access. PRA shareholders received $80 in cash and 0.4125 shares of ICON stock. This strategic move positions ICON to improve biopharma customers' success in bringing essential medicines and devices to market.

Positive

• Acquisition enhances operational capacity with 38,000 employees across 47 countries.
• New focus on data utilization and technology for accelerated drug development.
• Combining resources to improve clinical trial efficiency and patient access.

Negative

• Integration challenges may arise from the merger of two large organizations.
• Potential dilution of current shareholders due to share issuance for PRA acquisition.

ICON plc, (NASDAQ: ICLR) (“ICON”) today announced the completion of its acquisition of PRA Health Sciences. The combined company will retain the name ICON and will bring together 38,000 employees across 47 countries, creating the world’s most advanced healthcare intelligence and clinical research organisation.

The combined company will leverage its enhanced operations to transform clinical trials and accelerate biopharma customers’ commercial success through the development of much needed medicines and medical devices. The new ICON will have a renewed focus on leveraging data, applying technology and accessing diverse patient populations to speed up drug development.

Transaction close details

Upon completion of the acquisition, pursuant to the terms of the merger agreement, PRA became a wholly owned subsidiary of ICON plc. Under the terms of the merger, PRA shareholders received per share $80 in cash and 0.4125 shares of ICON stock. The trading of PRA common stock on NASDAQ was suspended prior to market open on July 1, 2021.

About ICON plc

ICON plc is a world-leading healthcare intelligence and clinical research organisation. From molecule to medicine, we advance clinical research providing outsourced services to pharmaceutical, biotechnology, medical device and government and public health organisations. We develop new innovations, drive emerging therapies forward and improve patient lives. With headquarters in Dublin, Ireland, ICON will operate from 163 locations in 47 countries and have approximately 38,000 employees as of July 1, 2021.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements. These statements are based on management's current expectations and information currently available, including current economic and industry conditions. These statements are not guarantees of future performance or actual results, and actual results, developments and business decisions may differ from those stated in this press release. The forward-looking statements are subject to future events, risks, uncertainties and other factors that could cause actual results to differ materially from those projected in the statements, including, but not limited to, the ability to enter into new contracts, maintain client relationships, manage the opening of new offices and offering of new services, the integration of new business mergers and acquisitions, the impact of COVID-19 on our business, as well as other economic and global market conditions and other risks and uncertainties detailed from time to time in SEC reports filed by ICON, all of which are difficult to predict and some of which are beyond our control. For these reasons, you should not place undue reliance on these forward-looking statements when making investment decisions. The word "expected" and variations of such words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are only as of the date they are made and we do not undertake any obligation to update publicly any forward-looking statement, either as a result of new information, future events or otherwise. More information about the risks and uncertainties relating to these forward-looking statements may be found in SEC reports filed by ICON, including its Form 20-F, F-1, F-4, S-8 and F-3, which are available on the SEC's website at http://www.sec.gov.

ICON/ICLR-F

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FAQ

What was the acquisition price for PRA Health Sciences by ICON plc?

PRA Health Sciences shareholders received $80 in cash and 0.4125 shares of ICON stock.

What are the expected benefits of the ICON and PRA merger?

The merger aims to accelerate drug development and transform clinical trials by leveraging enhanced technologies and data.

How many employees will the new ICON have after the acquisition?

The combined company will have approximately 38,000 employees.

When was the acquisition of PRA Health Sciences completed?

The acquisition was completed on July 1, 2021.

What is the significance of the merger for ICON plc's future?

The merger positions ICON as a leading organization in healthcare intelligence, aiming to enhance commercial success for biopharma clients.