The takeover boosts Ergomed’s offering in oncology and rare diseases, also expanding its footprint in North America, with additional offices in Houston, Raleigh and Boston, as well as in Newcastle upon Tyne in the UK.
Ergomed said it expects the increased US presence, with the addition of over 110 US-based employees, to drive substantial new awards in the region and increase its pipeline in both the CRO and pharmacovigilance (PV) businesses.
“The addition of MedSource and its complementary expertise in oncology and rare disease will further establish Ergomed as a specialized services provider in the strategically important US market, “Ergomed’s executive chairman Miroslav Reljanović said.
Adding that the deal builds on the successful acquisition and integration of Ashfield Pharmacovigilance (now PrimeVigilance USA) earlier this year, Reljanović said, “we look forward to developing the potential of this new business to offer truly global clinical research services to our international customer base.”
Eric Lund, founder of MedSource, will remain with the firm as president after the acquisition. He described the takeover as “an important strategic step and natural fit for MedSource.”
Under the terms of the transaction, Ergomed is paying an initial cash sum of $16.2 million, plus up to $1.8 million in Ergomed shares and up to a further $7 million (90% in cash and 10% in shares) contingent upon MedSource’s financial results for 2021. In 2019, the company being acquired posted total revenues of $31.3 million and adjusted EBITDA of $1.3 million.
MedSource also brings an existing order book of over $41 million, adding to Ergomed’s order book of £151.4 million as reported in its first-half 2020 interim results. Ergomed said the transaction will be immediately accretive and earnings-enhancing.
Author: Elaine Burridge, Freelance Journalist
