Clarivate Analytics has agreed to acquire Decision Resources Group (DRG) from Piramal Enterprises in a deal valued at around $950m.
DRG is engaged in offering high-value data, analytics and insights products and services to the healthcare industry.
The deal includes $900m in cash, as well as issuing of up to $50m in Clarivate ordinary shares following the first anniversary of closing.
Clarivate Analytics chairman and CEO executive chairman Jerre Stead said: “This is a milestone acquisition which doubles the size of our Life Sciences business, is accretive to our 2020 earnings, and sets us up to become an essential, end-to-end, industry-leading data and analytics provider to the highly attractive Life Sciences ecosystem.”
DRG has expertise in creating patient-centric commercial strategies for the pharma, biotech and medical technology companies to achieve success in complex health markets.
The firm delivers expert consultation, data and analysis enhanced by machine learning artificial intelligence (AI) to help clients make evidence-based business decisions.
The combined company will support customers across the drug, device and medical technology lifecycle ranging from research to outcome. It will serve as a one-stop-shop for life sciences customers to optimise the commercialisation of therapies.
Upon completion of the deal, DRG’s current CEO Vivek Sharma will leave the company and join Clarivate’s science group.
The science group is comprised of both Cortellis suite of life science intelligence solutions and Web of Science publisher-neutral citation index and research intelligence platform.
DRG and Clarivate’s expertise, data and technologies will enable customers to take faster evidence-based decisions to achieve clinical and commercial success.
Subject to the satisfaction of customary closing conditions and regulatory approvals, the deal is expected to be completed within the first quarter of 2020.
Piramal Group chairman Ajay Piramal said: “We are pleased to have grown DRG’s market leadership over the last few years and believe that through this combination, Clarivate, with its size and scale, is well-positioned to further accelerate DRG’s growth potential.”