Thursday 21 September 2017

UDG Healthcare to pay up to $76m for US firm

Brendan McAtamney, chief executive of UDG Healthcare
Brendan McAtamney, chief executive of UDG Healthcare
John Mulligan

John Mulligan

UDG Healthcare has made its sixth acquisition of the financial year, after agreeing to pay up to $75.8m (€63m) for US-based healthcare business MicroMass Communications.

UDG has completed a string of acquisitions in the United States in recent years.

Based in North Carolina, MicroMass designs solutions across all therapeutic areas that improve patient and health outcomes by changing patient and provider behaviour.

These solutions are individually created to meet the requirements of each of MicroMass' pharmaceutical clients.

MicroMass, which was founded more than 20 years ago, says it uses a specialised approach that "shifts attitudes, builds skills and changes behaviour".

Those skills are intended to help patients better manage their underlying conditions.

MicroMass is being acquired by UDG Healthcare for an initial consideration of $63.8m (€53.6m), with an additional consideration of up to $12m payable over the next three years, based on the achievement of agreed profit targets.

The US firm employs more than 100 people, and its senior management team will remain with the business following the completion of the acquisition.

MicroMass will be part of UDG Healthcare's Ashfield medical communications and advisory services to the healthcare industry.

UDG Healthcare chief executive Brendan McAtamney said that MicroMass has developed a "highly-differentiated" suite of solutions for patients and healthcare professionals.

"MicroMass provides the group with the ability to strengthen Ashfield's presence and capabilities in the US market, whilst also providing us with a platform to expand into the high growth areas of behavioural change and direct patient engagement," he said.

Last month, UDG lifted its full-year guidance on the back of acquistion activity.

In a third-quarter trading update, the Dublin company, whose shares are listed in London, said that its group trading performance during the three months to the end of June had been good, with revenue and adjusted pre-tax profit ahead compared to the corresponding period last year.

UDG Healthcare's activities span sales, marketing and medical communications outsourcing, and drug packaging, and it has a number of operations in the United States.

"Growth has been driven by a combination of underlying growth and the benefit of acquisitions, moderated by a foreign exchange headwind on the translation of non-US profits," the company noted.

Since the start of its financial year last October, UDG has agreed to pay $200m for a number of acquisitions, including STEM, Sellxpert, Vynamic, Cambridge Biomarketing, and a US packaging facility.

Irish Independent

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