UDG Healthcare seals $32m deal for Vynamic
Dublin-listed UDG Healthcare has sealed a deal to buy a US-based healthcare management consulting firm for up to $32m (€28m).
The Vynamic acquisition will sit in the company's Ashfield division, which provides commercialisation services to the pharma and healthcare industries.
UDG said: "It is the group's first management consultancy acquisition and offers services which are highly complementary to the existing range of services provided by Ashfield."
The deal will see $22m (€19m) paid up front, with the potential for a further $10m (€8.7m) if certain profit targets are met.
"Vynamic is an excellent fit for UDG Healthcare, both strategically and culturally, and demonstrates our strategic commitment to developing our market-leading positions through geographic and services expansion," UDG Healthcare CEO Brendan McAtamney said.
UDG has been reinventing itself in recent years after selling legacy distribution businesses to focus on higher-margin areas.
"We are positive on the Vynamic transaction, which is in line with UDG Healthcare's strategy of growing both its advisory capability and US presence," Davy analysts Allan Smylie and Andrew Young said.
They said they estimated the deal would add more than 2pc to UDG's earnings per share in 2018.