Quintiles paid $146.5M for CRO Novella, SEC filing shows

06-Nov-2013 - Last updated on 27-Nov-2023 at 15:35 GMT

Novella could earn $21m more in the deal

CRO Quintiles said that it paid $146.5M in cash for oncology and device CRO Novella Clinical.

According to filing with the US SEC, Quintiles purchased 100% of Novella for about $146.5m, though they may pay as much as $21m more if Novella meets “certain revenue and net new business targets for approximately three years following closing.”

Quintiles also said it “recognized a liability of approximately $14.3 million as the estimated acquisition date fair value of the earn-out.”

Industry insiders in August told us that the deal made sense for Quintiles as Novella could offer the CRO access to new markets.

The company also incurred other expenses during the second quarter of 2013, including a $25m fee in connection with the “termination of the management agreement with affiliates of certain shareholders” and a $1.5m fee “paid in connection with the modification of an agreement for the business usage of an airplane.”

This latest SEC filing was related to the company’s most recent earnings report, which revealed that the company is upping its earnings per share forecast for the rest of the year.