EQT and Goldman Sachs to buy Parexel for $8.5bn

EQT Private Equity and Goldman Sachs have agreed to acquire Parexel, a global clinical research organization, for $8.5 billion.

EQT Private Equity and Goldman Sachs have agreed to acquire Parexel, a global clinical research organization, for $8.5 billion. The seller is Pamplona Capital Management. Goldman Sachs and Jefferies LLC acted as financial advisors to EQT Private Equity and Goldman Sachs Asset Management on the deal while Simpson Thacher & Bartlett LLP provided legal counsel.

PRESS RELEASE

EQT Private Equity and Goldman Sachs Asset Management to acquire Parexel, a leading global clinical research organization, for USD 8.5 billion

The EQT IX fund (“EQT Private Equity”) and the Private Equity business within Goldman Sachs Asset Management (“Goldman Sachs”) have agreed to acquire Parexel (the “Company”), a leading global clinical research organization from Pamplona Capital Management for an enterprise value of USD 8.5 billion.

Parexel was founded in 1982 and is co-headquartered in Durham, NC and Newton, MA, USA. The Company has significant expertise across the drug development and commercialization continuum, offering a comprehensive suite of outsourced clinical research services, as well as regulatory, market access, and strategy consulting services. Parexel’s services enable the pharma and biotech industry to develop innovative new medicines that improve the health of patients across the world. The Company has a strong patient centric focus, having been a driving force in the market shift towards decentralized clinical trials and increased patient diversity over the last few years. Parexel employs more than 17,000 people and conducts clinical trials in more than 95 different countries.

Eric Liu, Partner and Global Co-Head of Healthcare at EQT, commented, “We have followed Parexel closely during the past few years and have been impressed by the Company’s development and trajectory. Our investment in Parexel reflects EQT’s thematic focus on the life sciences industry, as well as our commitment to partnering with businesses that have a positive impact on society. We are excited to partner with Goldman Sachs for the next stage of Parexel’s journey, and to back Jamie, who prior to his role at Parexel had been a long-time senior advisor to EQT, as well as the rest of the Parexel team.”

Jo Natauri, Partner and Global Head of Private Healthcare Investing within Goldman Sachs Asset Management, commented, “We are thrilled to partner with Jamie Macdonald, the entire Parexel management team and EQT to support Parexel, which has a distinguished track record of delivering clinical excellence to their large pharma and biotech customers globally. We believe this investment will accelerate Parexel’s growth as it builds on the company’s global footprint, strong operational capabilities and expansive healthcare network.”

Jamie Macdonald, CEO of Parexel, commented, “We are proud of what Parexel has achieved over the recent years in collaboration with Pamplona, and the transformative journey that we have embarked on. EQT and Goldman Sachs are two leading global institutions with significant experience and expertise in the healthcare sector, and I am excited to partner with both in the next stage of our journey.”

The transaction is subject to customary conditions, including receipt of applicable regulatory approvals.

Goldman Sachs and Jefferies LLC acted as financial advisors to EQT Private Equity and Goldman Sachs Asset Management, and Simpson Thacher & Bartlett LLP provided legal counsel.

With this transaction, EQT IX fund is expected to be 55-60 percent invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication).

About EQT
EQT is a purpose-driven global investment organization with more than EUR 67 billion in assets under management across 26 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and the Americas with total sales of approximately EUR 29 billion and more than 175,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.