Permira, the London-based private equity firm, has made a substantial investment of 703 million pounds sterling (equivalent to $886 million) to acquire Ergomed, a leading U.K.-based Contract Research Organization (CRO). This significant transaction, successfully finalized on September 4th, took the form of a cash offer of 13.50 euros per share, presenting a noteworthy 28% premium over Ergomed’s closing share price of 10.52 euros on September 1st, as confirmed by both companies in a joint statement.
The acquisition was met with unanimous approval from Ergomed’s board of directors, a crucial step in this strategic move. The CRO’s advisory team for this milestone deal included Jefferies and Numis, further underlining the robustness of the agreement.
Ergomed, founded in 1997, has firmly established itself as a global provider of clinical research and trial management services, specializing notably in oncology and rare diseases. The company, headquartered in Guildford, England, has a strong international presence with offices spanning across Europe, the United States, and Asia. In 2020, Ergomed bolstered its rare disease and oncology services, as well as expanded its North American footprint, through the acquisition of Houston-based CRO MedSource, a strategic move that set the stage for its continued growth and influence in the industry.
This latest investment aligns with Permira’s track record of strategic acquisitions in the healthcare sector. In 2019, they made a significant move by investing $2 billion to acquire the Contract Development and Manufacturing Organization (CDMO) Cambrex. Recent endeavors have also included substantial acquisitions such as the $5.8 billion purchase of cloud-based email service provider Mimecast and the acquisition of antivirus software company McAfee for over $14 billion, both successfully completed in 2022.
The acquisition of Ergomed signifies a pivotal moment for Permira, showcasing their commitment to furthering their presence in the healthcare and life sciences sector. As the world of clinical research and trial management continues to evolve, this strategic investment positions Permira and Ergomed to play a vital role in shaping the future of healthcare innovation. This dynamic partnership is poised to make significant contributions to the fields of oncology, rare diseases, and beyond, ultimately benefiting patients worldwide.