Pharmaceutical services provider Ergomed said it had acquired MS Clinical Services, a US-based clinical research organisation, for at least $16.2 million.
The acquisition would further accelerate Ergomed's growth in the North American market, with additional offices in Houston, Raleigh and Boston in the USA, and Newcastle upon Tyne in the UK.
'The increased US presence, with the addition of over 110 US-based employees, is expected to drive substantial new awards in the region and increase Ergomed's pipeline in both the CRO and PV businesses,' the company said.
The acquisition would add over 20 new clients to its CRO business with over $41 million order book of future contracted revenue, the company said.
Under the terms of the deal, Ergomed would pay an initial consideration comprising $16.2 million in cash, and up to $1.8 million in Ergomed shares based on the average daily closing price for 30 days preceding the acquisition and within 15 months of the closing of the transaction.
The company also agreed to pay up to a further $7.0 million - 90% in cash and 10% in shares - depending on MedSource's financial results in the year to 31 December 2021.
'Looking ahead to 2021 we expect to see continued momentum across the business as we look to increase our footprint in key geographies, and firmly establish Ergomed as a leading global provider of specialist services to the pharmaceutical industry,' it added.
At 8:20am: (LON:ERGO) Ergomed PLC share price was 0p at 795p
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