Thermo Fisher Scientific has agreed to acquire PPD, a US-based clinical research services provider, for $47.50 per share or $20.9 billion.

The consideration includes assumption of nearly $3.5 billion of the contract research organization’s net debt.

Based in North Carolina, PPD caters to the pharma and biotech industry with a variety of clinical research and laboratory services for expediting innovation and boost drug development productivity.

The clinical research services provider has a workforce of over 26,000 spread over nearly 50 countries.

Last year, PPD earned revenue of $4.7 billion.

Post-acquisition, the company will become part of the laboratory products and services segment of Thermo Fisher Scientific.

David Simmons – chairman and CEO of PPD said: “This is a very exciting announcement for our shareholders and will provide customers with an even better opportunity to bring meaningful innovation to the market faster and more efficiently.

“Thermo Fisher is a world-class company with a very similar culture and values and will provide a great foundation for our colleagues to continue to deliver for our customers and to develop their own skills and careers.”

According to Thermo Fisher Scientific, PPD boosts its offering by adding a proven drug development platform, capabilities in patient recruitment, and a strong laboratory services. The combined capabilities are said to further improve the value proposition of Thermo Fisher Scientific to pharma and biotech customers.

Marc N. Casper – chairman, president, and CEO of Thermo Fisher Scientific said: “Pharma and Biotech is our largest and fastest growing end market, and our customers value us as a strategic partner and an industry leader.

“The acquisition of PPD is a natural extension for Thermo Fisher and will enable us to provide these customers with important clinical research services and partner with them in new and exciting ways as they move a scientific idea to an approved medicine quickly, reliably and cost effectively.

“Longer term, we plan to continue to invest in and connect the capabilities across the combined company to further help our customers accelerate innovation and drive productivity, while driving further value for our shareholders.”

The deal, which is subject to regulatory approvals and other customary closing conditions, is anticipated to be closed by the end of this year.

  Contract research organization, David Simmons, Marc N. Casper, North Carolina, Pharma acquisition news, PPD, Thermo Fisher Scientific