Canada’s Valeant Pharmaceuticals International has agreed to buy Australia’s iNova Pharmaceuticals for A$625 million ($623 million) upfront, writes Reuters. The deal marks an exit for private equity firms Archer Capital and Ironbridge. Valeant said the deal includes an additional A$75 million in potential milestone payments based on the success of pipeline activities, writes Reuters. This is the latest in a string of sales by private equity firms in Australia in recent months as they exit investments made in the boom years, according to Reuters.
(Reuters) – Canada’s Valeant Pharmaceuticals International Inc said it agreed to buy Australia’s iNova Pharmaceuticals from private equity firms Archer Capital and Ironbridge for A$625 million ($623 million) upfront.
Valeant said the deal includes an additional A$75 million in potential milestone payments based on the success of pipeline activities.
The deal is the latest in a string of sales by private equity firms in Australia in recent months as they exit investments made in the boom years. Archer sold its MYOB software business in August for A$1.3 billion.
iNova, which sells prescription and over-the-counter drugs in Australia, New Zealand, Southeast Asia and South Africa, will have total 2011 revenues of about A$200 million, Valeant said.
“This transaction not only transforms our operations in the Australian market, but provides us with a beachhead in both Southeast Asia and South Africa,” said Valeant Chairman J. Michael Pearson.
He said the deal was expected to be immediately accretive.
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