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news.PharmaNet Development Group, a provider of clinical development services, has signed a definitive merger agreement with affiliates of JLL Partners, a New York-based private equity investment firm.
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Under the terms of the merger agreement, JLL will commence a tender offer to purchase all of the outstanding shares of PharmaNet at a price of $5 per share in cash, representing a significant premium to PharmaNet’s average closing price for the past 30 days.
The transaction values the company’s common stock at approximately $100 million. The transaction will be financed by a $250 million equity commitment from JLL which includes the necessary funds to retire the $144 million principal amount of the company’s outstanding convertible notes.
The transaction is subject to the valid tender of a majority of PharmaNet common stock, regulatory approvals and other customary conditions, but it is not subject to any financing conditions. The parties expect the tender offer to close by the end of the first quarter of 2009.
Jeffrey McMullen, president and CEO of PharmaNet, The board of directors and I are very pleased to have a partner in JLL that recognizes the substantial value we have built in the PharmaNet Development Group franchise. We believe this transaction provides meaningful value to our stockholders while providing the solution to address the outstanding convertible notes.