UPDATE 1-Kforce to sell clinical research business for $50 mln
March 19 (Reuters) - Staffing company Kforce Inc said it has agreed to sell its clinical research business to inVentiv Health Inc for $50 million in cash, as it looks to focus on its core business.
The clinical business, which provides contingent contract staffing and permanent placement of clinical research personnel to pharmaceutical and biotechnology companies, accounted for about 9.5 percent of Kforce's total revenue in 2011.
"Continuing strong demand in our tech and FA (financial and accounting) businesses should allow us to replace the lost revenue from KCR (Kforce Clinical Research) over the next twelve months," Joe Liberatore, Kforce's chief financial officer said in a statement.
Kforce, which competes with Korn/Ferry International , Kelly Services and SFN Group, said it expects the transaction to close by March-end.
Separately, inVentiv Health said it expects adjusted annual revenue of about $70 million.
inVentiv Health provides clinical, consulting and commercial services to the pharmaceutical and healthcare industries.
Shares of the Tampa, Florida-based Kforce closed at $14.57 on Friday on the Nasdaq.
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