Clarivate Buys Decision Resources
Clarivate buys Decision Resources.
Clarivate Analytics buys Decision Resources Group from Piramal Enterprises Limited for $950 million.
DRG offers expert sounding and analysis boosted by machine learning and AI to give a full view of patient access and payer and health system dynamics at local levels for the healthcare ecosystem. The firm's experts cover healthcare markets, disease areas, and data science disciplines. This allows pharma, biotech, and medical tech companies to create real patient-centric strategies in complex health markets. Together, DRG and Clarivate are well-positioned to support customers across the entire drug, device, and medical tech life cycle from research to outcome. The joint business will offer a one-stop Life Sciences shop, boosting the commercialization of new therapies.
DRG's and Clarivate's paired solutions better position the firm in a market that favors tech-enabled players with end-to-end abilities and broad exclusive data sets. Clarivate's products, such as Cortellis, focus on innovation covering the front-end of pre-clinical and clinical development, regulatory review, and business growth. DRG has focused on the delivery of essential solutions for commercializing drugs, devices, and medical tech. Leveraging the ability, content, and tech of both firms will create revenue growth openings through new product development and deeper market penetration.
Jerre Stead of Clarivate Analytics said: ‘This is a milestone acquisition which doubles the size of our Life Sciences business, is accretive to our 2020 earnings, and sets us up to become an essential, end-to-end, industry-leading data and analytics provider to the highly attractive Life Sciences ecosystem. We expect the acquisition of DRG to increase Clarivate's total company revenue by 20%, deliver $77 million in annual Adjusted EBITDA before the pursuit of any revenue synergies, and drive DRG's Adjusted EBITDA margins towards Clarivate's total company target of greater than 40%. Both companies have a great heritage built on talented people with deep industry subject matter and technical ability. Together, we look forward to unlocking the tremendous potential of a unified team.’
Ajay Piramal of Piramal Group said: ‘We are happy to have grown DRG's market leadership over recent years and believe that through this combination, Clarivate, with its size and scale, is well-positioned to further speed up DRG's growth potential. This transaction demonstrates our continued commitment to creating sustained long-term value for all stakeholders. Along with the ongoing equity capital raise in PEL, this transaction further strengthens the company's balance sheet and marks another step towards unlocking future value.’
Mukhtar Ahmed of Clarivate Analytics said: ‘The addition of DRG's services and solutions to our portfolio supports our focus on creating exceptional customer value through delivering highly specialized analytics and expert insights and a wider range of Life Sciences solutions that help solve our customers' tough challenges when discovering, developing and commercializing new drugs, medical devices, and technologies. The acquisition also means that by combining ability, data, and technologies, Clarivate will be able to pursue significant growth opportunities through new product development and deeper market penetration driven by offering our customers a broader portfolio of tools and services.’
Clarivate Analytics buys Decision Resources Group from Piramal Enterprises Limited for $950 million.
DRG offers expert sounding and analysis boosted by machine learning and AI to give a full view of patient access and payer and health system dynamics at local levels for the healthcare ecosystem. The firm's experts cover healthcare markets, disease areas, and data science disciplines. This allows pharma, biotech, and medical tech companies to create real patient-centric strategies in complex health markets. Together, DRG and Clarivate are well-positioned to support customers across the entire drug, device, and medical tech life cycle from research to outcome. The joint business will offer a one-stop Life Sciences shop, boosting the commercialization of new therapies.
DRG's and Clarivate's paired solutions better position the firm in a market that favors tech-enabled players with end-to-end abilities and broad exclusive data sets. Clarivate's products, such as Cortellis, focus on innovation covering the front-end of pre-clinical and clinical development, regulatory review, and business growth. DRG has focused on the delivery of essential solutions for commercializing drugs, devices, and medical tech. Leveraging the ability, content, and tech of both firms will create revenue growth openings through new product development and deeper market penetration.
Jerre Stead of Clarivate Analytics said: ‘This is a milestone acquisition which doubles the size of our Life Sciences business, is accretive to our 2020 earnings, and sets us up to become an essential, end-to-end, industry-leading data and analytics provider to the highly attractive Life Sciences ecosystem. We expect the acquisition of DRG to increase Clarivate's total company revenue by 20%, deliver $77 million in annual Adjusted EBITDA before the pursuit of any revenue synergies, and drive DRG's Adjusted EBITDA margins towards Clarivate's total company target of greater than 40%. Both companies have a great heritage built on talented people with deep industry subject matter and technical ability. Together, we look forward to unlocking the tremendous potential of a unified team.’
Ajay Piramal of Piramal Group said: ‘We are happy to have grown DRG's market leadership over recent years and believe that through this combination, Clarivate, with its size and scale, is well-positioned to further speed up DRG's growth potential. This transaction demonstrates our continued commitment to creating sustained long-term value for all stakeholders. Along with the ongoing equity capital raise in PEL, this transaction further strengthens the company's balance sheet and marks another step towards unlocking future value.’
Mukhtar Ahmed of Clarivate Analytics said: ‘The addition of DRG's services and solutions to our portfolio supports our focus on creating exceptional customer value through delivering highly specialized analytics and expert insights and a wider range of Life Sciences solutions that help solve our customers' tough challenges when discovering, developing and commercializing new drugs, medical devices, and technologies. The acquisition also means that by combining ability, data, and technologies, Clarivate will be able to pursue significant growth opportunities through new product development and deeper market penetration driven by offering our customers a broader portfolio of tools and services.’
Vivek Sharma of DRG said: ‘I am excited for this acquisition as it creates an even more powerful platform for DRG's AI and analytics-enabled solutions to support our customers in their quest to improve patient health outcomes. This new and expanded platform will further empower our employees to continue their focus on customer centrality and collaborative innovation with our customers.’
Vivek will leave the company after completion of the deal, when the business joins the Science Group at Clarivate Analytics, under the guidance of Mukhtar Ahmed. This Product Group includes both the Cortellis suite of Life Science intelligence solutions and Web of Science, the world's largest publisher-neutral citation index and research intelligence platform.
Evercore served as financial advisor to Clarivate. Davis Polk & Wardwell served as legal advisor.
Covington & Burling served as legal advisor to Piramal Enterprises Limited.
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