UDG Health­care buys agency for over €63m

The Irish Times - Business - - NEWS - PETER HAMIL­TON

Dublin head­quar­tered UDG Health­care has ac­quired a health­care com­mu­ni­ca­tions agency for up to $75.8 mil­lion (€63.8 mil­lion).

US-based Mi­croMass com­mu­ni­ca­tions spe­cialises in be­havioural change and de­signs so­lu­tions to im­prove pa­tient out­comes. The com­pany gen­er­ates the ma­jor­ity of its rev­enue from pa­tient en­gage­ment and sup­port pro­grammes.

An ini­tial con­sid­er­a­tion of $63.8 mil­lion will be paid for Mi­croMass with an ad­di­tional $12 mil­lion payable over the next three years sub­ject to the achieve­ment of agreed profit tar­gets.

Both Mi­croMass’ 100 staff and man­age­ment team will re­main with the busi­ness at its North Carolina base af­ter the ac­qui­si­tion.

“UDG has now com­mit­ted more than $275 mil­lion to ac­qui­si­tions this fi­nan­cial year, in line with our strat­egy of ex­pand­ing into higher growth, higher mar­gin ar­eas, through ac­qui­si­tions that add fur­ther ca­pa­bil­i­ties for our global phar­ma­ceu­ti­cal client base and are a strong strate­gic and cul­tural fit to our ex­ist­ing busi­nesses,” said Bren­dan McA­tam­ney, UDG Health­care chief ex­ec­u­tive.

London-listed UDG Health­care, which op­er­ates across three di­vi­sions known as Ash­field, Sharp and Aquilant, em­ploys over 8,000 peo­ple in 23 coun­tries. This ac­qui­si­tion will ex­pose the com­pany to Mi­croMass clients in­clud­ing Glax­o­smithk­line, Sanofi and No­var­tis.

“We think that to­day’s an­nounced deal is an ex­cel­lent strate­gic fit. It is in line with UDG’s strat­egy of grow­ing Ash­field’s pres­ence in the US mar­ket. It is also highly com­ple­men­tary to Ash­field’s ser­vice of­fer­ing,” Davy an­a­lysts said in a client note.

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