* Thomas H. Lee Partners to pay $26/shr
* Expects to close deal in Q3
* Shares up 6 pct in extended trade
(Adds details, updates share movement)
By Anand Basu
BANGALORE, May 6 Pharmaceutical services
provider InVentiv Health Inc VTIV.O said it agreed to be
acquired by private equity firm Thomas H. Lee Partners [THL.UL]
for about $1.1 billion.
THL Partners will pay $26 per share, a premium of 7 percent
to InVentiv's closing price Wednesday on Nasdaq. However,
InVentiv shares had already risen 42 percent since March 26,
when the company confirmed that it had been approached by
David Windley of Jefferies & Co said the premium offered by
THL was much higher than what the stock was trading before
"We thought a deal might go as high as mid-twenties, so the
purchase price is coming at the high end of where I was
thinking," said Windley, who has a "hold" rating on InVentiv
InVentiv expects to complete the deal in the third quarter
Last month, Apollo Management outdid THL Partners, and
acquired CKE Restaurants Inc CKR.N, the owner of the Hardee's
and Carl's Jr. hamburger chains. [ID:nN25165185]
CKE had previously agreed to be acquired by THL Partners
for $11.05 per share, or $619 million.
THL is also one of the partners in Blackstone Group's
(BX.N) bid to buy Fidelity National Information Services
Goldman Sachs & Co. acted as financial advisor, for
InVentiv's board, while Citigroup is advising Thomas H. Lee.
Separately, InVentiv reported better-than-expected
quarterly profit, helped by higher revenue from its clinical
and communications segments.
For the first quarter the company reported a net income of
$10.2 million, or 30 cents a share, compared with $7.9 million,
or 24 cents a share, a year ago.
Excluding items it earned 33 cents a share. Revenue rose 5
percent to $269.4 million.
Analysts on average expected earnings of 26 cents a share,
excluding special items, on revenue of $272.1 million,
according to Thomson Reuters I/B/E/S.
For the first quarter, InVentiv's clinical revenue rose 5
percent to $54.0 million, while communications revenue were up
24 percent to $88.1 million.
Shares of the Somerset, New Jersey-based company were up 6
percent at $25.30 in extended trade.
(Reporting by Anand Basu in Bangalore; Editing by Anthony
Kurian and Anil D'Silva)