(Reuters) – Syneos Health Inc (SYNH.O), a U.S. contract research organization (CRO) that serves the pharmaceutical industry, is exploring a sale, people familiar with the matter said on Monday.
A deal for Syneos would be the latest in string of acquisitions of CROs, which have benefited in recent years from pharmaceutical companies’ drive to cut costs, reduce clinical trial times and expand their research and development presence around the world.
Syneos is working with investment bank Centerview Partners on soliciting acquisition offers from other companies and private equity firms, the sources said.
The sources cautioned that a deal is not certain and asked not to be identified because the matter is confidential. Syneos declined to comment, while Centerview did not respond to a request for comment.
Syneos shares were trading down 30% because of the stock market rout before the Reuters story on Monday, but jumped on the news of the possible sale to trade up 1.7% at $65.60, giving it a market value of close to $7 billion. Syneos also had a debt pile of $2.7 billion as of the end of December.
