Piramal Enterprises Limited on Friday announced that PEL DRG Dutch HoldCo BV, a 100 per cent subsidiary of PEL and the holding company for Decision Resources Group (DRG), which is engaged in healthcare insights and analytics business, has signed a definitive agreement to sell DRG to US-based Clarivate Analytics for $950 million.
The deal will give Piramal $900 million on closing and $50 million to be received at the end of 12 months from the date of closing. This transaction, subject to shareholder' approval, is expected to be completed by February-end.
PEL had initially invested $650 million in 2012 to acquire DRG, of which $260 million was infused as equity. It has realised 2.3x its initial equity investment in rupee terms, said a press release.
"We are pleased to have grown DRG's market leadership over the last few years and believe that through this combination, Clarivate, with its size and scale, is well-positioned to further accelerate DRG's growth potential. This transaction demonstrates our continued commitment to creating sustained long-term value for all stakeholders," says Ajay Piramal, Chairman, Piramal Group.
Along with the ongoing equity capital raise in PEL, this transaction not only strengthens the company's balance sheet but also marks another step towards significantly unlocking value in future, he says.
Vivek Sharma, CEO, DRG, says: "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 centricity and collaborative innovation with our customers."
DRG, the high-value data, analytics and insights business of the Piramal Group, specialises in enabling the world's leading pharma, biotech and medical technology companies to achieve commercial success in complex health markets with the creation of effective patient-centric commercial strategies.
With this acquisition, the over $5 billion worth Clarivate will be well-positioned in the $19 billion life sciences analytics market, which is enjoying double-digit growth. It will offer a one-stop-shop for life sciences customers, helping them improve the commercialisation of life-changing therapies.