UDG Healthcare buys agency for over €63m
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.