Health information and technology services company IMS Health Holdings will merge with biopharmaceutical development/outsourcing firm Quintiles Transnational Holdings in a $9 billion all-stock deal, the companies announced.
The deal will provide IMS shareholders with 0.384 shares of Quintiles common stock for each IMS share they hold.
Once the merger is complete, the company will be renamed Quintiles IMS Holdings.
The deal merges two companies that offer different slivers of the pharma support pie. IMS Health focuses on providing data that offers "unique insights into diseases, treatments, costs and outcomes," the company noted in a news release announcing the deal. Quintiles provides product development and integrated healthcare services.
"Together, our solutions will enable differentiation in the CRO market, advance real-world evidence capabilities and deliver comprehensive commercial solutions for our clients," IMS CEO Ari Bousbib said in a statement.
According to IMS, the deal will speed revenue growth, save $100 million in annual costs by the third year, provide tax advantages and add to adjusted diluted earnings per share by the next fiscal year. The merged company will keep dual headquarters in Danbury, CT and Research Triangle Park, NC.