IMS Health looking at buyout bids

By Gareth Macdonald

- Last updated on GMT

Related tags Stock market Ims health

IMS Health has confirmed it is “exploring strategic alternatives” after speculation this week suggested that the market analysis group had received a number of takeover bids.

Earlier this week Reuters​ said that a “source” had informed it that IMS had received an offer from private equity organisation Texas Private Group (TPG) as well as a rival joint bid from Salt Lake and BC Partners. The source also said a sale decision could be announced as soon as next month.

In a statement issued yesterday IMS, which has a market capitalisation of $2.7bn (€1.87bn), said it has retained Deutsche Bank Securities as its financial advisor and added that did not expect to make further public comment.

Since the speculation was first reported IMS, which is due to report its quarterly financial results later today, has seen its share price increase around 2.4 per cent in trading on the New York Stock Exchange (NYSE).

Job cuts and diversification

In July the analyst, whose figures are often quoted by pharmaceutical firms and industry journalists alike, announced plans to cut 850 jobs worldwide over the next 12 or so months as part of a bid to generate annual savings of $85m by the year 2011.

More recently the firm sought to further diversify its core analysis business by expanding what it calls its knowledge process outsourcing (KPO) offering through a collaboration agreement with Indian IT contracting group Tata Consultancy Services (TCS).

IMS also said it would set up a delivery centre in Bangalore, leveraging TCS’ local assets, outsourcing infrastructure and analytics capabilities and increasing its presence in India’s thriving pharmaceutical market and outsourcing sector.

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