Combination of Bioclinica and ERT to create a leading independent provider of data and technology for use in clinical trials
International private equity firm Cinven announces that it has agreed to merge Bioclinica (‘the Company’), a leading integrated solutions provider of clinical life science and technology expertise, with ERT, a global leader in clinical end-point data solutions. As part of the transaction, Cinven will become a significant minority shareholder of ERT working in partnership with Nordic Capital, Astorg and Novo Holdings A/S. Financial terms of the transaction are not disclosed.
Established in 1990, Bioclinica supports the development of new medications globally through its medical expertise, service experience and technology platform that improve the efficiency of clinical trials. Headquartered in the US, Bioclinica employs c. 2,600 people globally, with operations across the US, Europe and Asia.
Building on its experience in the global clinical trials industry through its February 2014 investment in Medpace, a leading contract research organisation (“CRO”), that Cinven successfully listed on the Nasdaq Global Select Market in August 2016, Cinven’s Healthcare team identified Bioclinica as a compelling investment opportunity and acquired the business in October 2016. During Cinven’s ownership, Cinven has worked closely with Euan Menzies, the CEO, and the rest of the management team to enhance Bioclinica’s operations and position Bioclinica for growth, particularly in its core medical imaging business, where there has been significant investment in team expansion and technology capabilities to respond to the increase in clinical trial activity globally.
The combination of Bioclinica and ERT will create a leading independent provider of data and technology for use in clinical trials globally. The combined organisation will be involved in approximately 4,000 clinical trials each year, serving the world’s major pharma and biotech companies and working in partnership with the major global CROs. The combination of Bioclinica’s technology and medical expertise in imaging, together with ERT’s expertise in collecting endpoint data, will ensure better and faster outcomes from clinical trials and will bring increased efficiency and innovation into the clinical trials industry, for the benefit of patients worldwide.
Commenting on the transaction, Alex Leslie, Partner at Cinven, said:
“We have worked hard with Euan and the excellent management team at Bioclinica to lay strong foundations for the future. We have invested in technology, new services and strengthening the team, which has resulted in strong growth momentum in the business.
“The combination of Bioclinica with ERT will bring immense benefits to the combined group’s customers and to patients across the world. We look forward to being able to continue contributing to, and investing into, the growth and development of the combined business through our ongoing shareholding.”
Executive Chairman & Chief Executive Officer of Bioclinica, Euan Menzies, added:
“Working alongside the Cinven team at Bioclinica, first as Chairman and more recently as Chief Executive, has given me a real appreciation for the strong market perspective regarding the clinical trials sector possessed by Alex and his colleagues. This strategic insight and focus has been invaluable as we have worked to prioritize new investment opportunities and accelerate growth.”
Completion of the transaction is expected in 2021 and is subject to customary conditions and regulatory approvals.
Jefferies LLC served as lead financial advisor to Bioclinica and Rothschild & Co served as co- advisor. Kirkland & Ellis LLP served as legal counsel to Cinven and Bioclinica.
Cinven is a leading international private equity firm focused on building world-class global and European companies. Its funds invest in six key sectors: Business Services, Consumer, Financial Services, Healthcare, Industrials and Technology, Media and Telecommunications (TMT). Cinven has offices in London, New York, Frankfurt, Paris, Milan, Madrid, Guernsey, Luxembourg and Hong Kong.
Cinven takes a responsible approach towards its portfolio companies, their employees, suppliers, local communities, the environment and society.
Cinven Capital Management (V) General Partner Limited, Cinven Capital Management (VI) General Partner Limited, Cinven Capital Management (VII) General Partner Limited and Cinven Capital Management (SFF) General Partner Limited are each authorised and regulated by the Guernsey Financial Services Commission, and Cinven Partners LLP, the advisor to the Cinven Funds, is authorised and regulated by the Financial Conduct Authority.
In this press release ‘Cinven’ means, depending on the context, any of or collectively, Cinven Holdings Guernsey Limited, Cinven Partnership LLP, Cinven (LuxCo1) S.A., and their respective Associates (as defined in the Companies Act 2006) and/or funds managed or advised by any of the foregoing.
Bioclinica is an integrated clinical life science solutions provider, delivering powerful insight into clinical trial development, assuring greater client success in bringing medical therapies to market, for people around the world. Through deep medical, scientific and technology expertise, the company provides medical imaging and cardiac safety services; clinical adjudication; randomization and trial supply management and optimization; electronic and eSource data capture; site and patient payments; clinical trial management software; and drug safety solutions. Bioclinica’s global team of life science experts serve more than 500 pharmaceutical, biotechnology and device organizations – including the top 20 biopharmaceutical companies and leading CROs – through offices in North America, Europe, and Asia.