27th Feb 2014 09:40
LONDON (Alliance News) - UDG Healthcare PLC Thursday said it will buy the healthcare communications business of KnowledgePoint360 for USD144 million in cash, a deal that will boost earnings immediately and sets it up to further expand its healthcare communications business outside the US and Europe.
In a statement, the healthcare services provider said it will have a "market leading" position in the global healthcare communications sector after the deal. It currently provides communications services in the UK and US through its Ashfield Division, and said the acquisition will further expand it in the US and Europe, as well as giving it a platform to expand elsewhere.
"KnowledgePoint360 is a significant strategic and complementary acquisition for UDG Healthcare, giving us a market leading position in the global healthcare communications sector and significantly enhancing the Ashfield offering to our clients," UDG Healthcare Chief Executive Liam FitzGerald said.
"Expansion in healthcare communications and related business areas is a key part of our global growth strategy," he added.
UDG Healthcare will pay for the deal from cash, and it expects it to complete by the end of March.
KnowledgePoint360 is headquartered in Macclesfield in the UK and in Lyndhurst, New Jersey in the US. It employs over 600 staff across 10 locations. USDG said it reports annual revenues of USD106 million and earnings before interest, tax, depreciation and amortisation of USD20 million, although it didn't give a specific year.
UDG Healthcare shares were up 1.7% at 376.50 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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