Thermo Fisher Scientific has completed its acquisition of PPD, a provider of clinical research services to the biopharma and biotech industry, for $17.4 billion.
“We are very excited to officially welcome our PPD colleagues to Thermo Fisher Scientific,” said Marc N. Casper, chairman, president and chief executive officer of Thermo Fisher Scientific.
“Expanding our value proposition for our biotech and pharmaceutical customers with the addition of PPD’s leading clinical research services advances our work in bringing life-changing therapies to market, benefitting patients around the world.”
In connection with the acquisition, Thermo Fisher will assume approximately $3.0 billion in net debt of PPD.
With the addition of PPD, Thermo Fisher says it will offer a comprehensive suite of world-class services across the clinical development spectrum − from scientific discovery, to assessing safety, efficacy, and health care outcomes, to managing clinical trial logistics, to the development and manufacturing of the drug product.
PPD will become part of Thermo Fisher’s Laboratory Products and Services Segment.
The transaction is expected to contribute $1.50 to Thermo Fisher’s adjusted earnings per share in 2022. The company expects to realize total synergies of approximately $125 million by year three following close, consisting of approximately $75 million of cost synergies and approximately $50 million of adjusted operating income benefit from revenue-related synergies.
