Monday 22 July 2019

UDG Heathcare continues US expansion with acquisitions worth $82m

UDG Healthcare chief executive Brendan McAtamney
UDG Healthcare chief executive Brendan McAtamney
Ellie Donnelly

Ellie Donnelly

Dublin-based UDG Heathcare has announced two new acquisitions in the US for a combined consideration of up to $82.4m (€71m).

Create NYC is a New York-based disruptive creative communications agency, while SmartAnalyst is a New York-based strategic commercialisation consulting and analytics business.

Both companies are dedicated to the healthcare market.

The core value proposition of Create NYC’s on-demand model means it can deliver its service with a faster response time and at a highly competitive price, a statement from UDG said.

Founded in 2009 by Natalie McDonald, who remains with the company as CEO, Create NYC employs 43 people in-house.

The business will become part of Ashfield Communications.

Create NYC is being acquired for a total consideration of up to $58.4m, with $17m paid upfront (approximately 2.5 times its earnings before interest and tax), and an earn out of up to $41.4m over five years.

For the year ending 31st December 2017, Create NYC had gross assets of $9.1m, which generated operating profits of approximately $7m.

Meanwhile SmartAnalyst is a US-based strategic consulting and analytics business focused on the pharmaceutical and biotech sector.

The company was founded in 2001 and has 135 employees based across operations in New York, London and Gurgaon, India.

SmartAnalyst is being acquired for a total consideration of up to $24m.

This includes initial consideration of $18m, with an earn out of up to $6m payable over the next three years, based on the achievement of agreed profit targets.

"We are delighted to announce these two acquisitions, which further expand the services we offer our healthcare clients," Brendan McAtamney, CEO of UDG Healthcare.

"Both transactions meet all of UDG’s acquisition criteria – they are a good strategic and cultural fit; meet our target financial hurdle rates; and involves an expansion of our current capabilities."

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