Benzinga | Feb 24, 2021 07:13AM EST

ICON Scoops Up PRA Health Sciences In $12B Deal

* ICON plc (NASDAQ: ICLR) has agreed to acquire PRA Health Sciences Inc (NASDAQ: PRAH) in a cash and stock transaction valued at approximately $12 billion.

* The per-share consideration consists of $80 in cash and 0.4125 shares of ICON stock, representing approximately a 30% premium to PRAH's closing price of 127.73 on Tuesday.

* The acquisition will help the companies address the needs for de-centralized and hybrid trial solutions from a combination of mobile and connected health platforms, home health services, and wearables expertise.

* The transaction is anticipated to be highly accretive, delivering double-digit accretion in the first full year and growing to 20%+ thereafter, with estimated annual run-rate cost synergies of $150 million.

* Current PRA Chairman and Chief Executive Officer Colin Shannon, along with one additional board member, will join the ICON board after closing the transaction.

* The deal is expected to complete in Q3 of 2021.

* PRA shareholders will own approximately 34% of the combined company's shares, and ICON shareholders will own the remaining 66%.

* Price Action: ICLR closed 0.2% higher at $208.6, while PRAH closed 0.3% higher at $127.73 on Tuesday.