GHO wins another pharma services auction, KKR and GIP buy CyrusOne

GHO wins another pharma services auction while KKR and GIP buy CyrusOne.

Happy Monday, hubsters!

Some personal news: Today is my last day at PE Hub, where most of you have probably gotten to know me for my partiality to digging into the latest deal, trend or drama making noise in the healthcare private equity universe. It’s been an amazing run and I’m grateful for all of the talented, supportive colleagues I’ve gotten the chance to learn from since secondaries scoopster Chris Witkowsky hired me as a young, enthusiastic reporter five years ago.

But the time has come for something new. Stay tuned, stay in touch, find me at San Francisco’s JPMorgan Healthcare Conference in January, or find me on LinkedIn!
Now, for some deal news.

GHO Capital, investing out of the largest healthcare-exclusive fund in Europe, has won what marks its third auction for a US-based pharma services asset this year. This firm has agreed to buy Genesis Research with a winning bid of $275 million, according to people familiar with the matter.

Genesis, based in Hoboken, is an international HEOR (health economics and outcomes research) and Real-World Evidence research organization. Under a dedicated staffing arrangement, Genesis places highly specialized consultants with clients in the pharmaceutical and biotech industries for extended periods.

This is a particularly attractive model, sources say. In contrast to project-based work, contracts under this model are long-term in nature and tend to renew year after year – lending to significant future visibility and stickiness.

The big picture? GHO is flexing its muscles in pharma services in a meaningful way, and doing so in a transatlantic manner — backing US-based businesses and taking them to Europe, and vice versa. Genesis builds upon the umbrella of investments the specialist firm has been assembling across various pockets of pharma services — and increasingly in the US, where it recently put feet on the ground.

In recent North American activity, GHO this summer prevailed in a competitive process for ClearView Healthcare Partners, a life sciences-focused strategic consulting firm. Earlier in the year, it snagged Velocity Clinical Research, a clinical site organization, in an around $500 million deal, PE Hub wrote.

Read my full report on PE Hub.

Mega: This just in… KKR and Global Infrastructure Partners have agreed to acquire CyrusOne in a take-private transaction valuing the business at $15 billion. CyrusOne is a global REIT specializing in design, construction and operation of more than 50 high-performance data centers worldwide.

The $90.50 per share purchase price reflects a premium of approximately 25 percent to the asset’s closing stock price on September 27, the last full trading day before market speculation regarding a potential sale emerged.

KKR’s investment is being made primarily from its global infrastructure and real estate equity strategies, and GIP’s investment is being made from its global infrastructure funds.

Read PE Hub’s brief on the deal.