Quintiles said today it will acquire Novella Clinical, a clinical research organization focused primarily on small- to medium-sized customers in oncology as well as the diagnostics and medical devices sectors. The price and other financial terms were not disclosed.
The deal, subject to customary closing conditions, is expected to close later this quarter. Once that happens, Novella will operate as a unit within Quintiles and be renamed “Novella Clinical, a Quintiles company.”
“Novella’s understanding of emerging companies, as well as our shared commitment to quality, customer service, and above all, the patients we ultimately serve, makes this acquisition a good fit for both organizations,” Paula Brown Stafford, Quintiles’ president, clinical development, said in a statement. “The expertise and insight the Novella team brings will be a strong addition to our existing capabilities and help further differentiate Quintiles in an increasingly competitive marketplace.”
The acquisition of Novella is Quintiles’ first deal since May, when the company raised nearly $950 million in its initial public offering of stock. The Novella purchase also appears to be the sort of deal CEO Tom Pike had in mind when he told Bloomberg last year that Quintiles was interested in making “tactical tuck-ins,” or acquisition deals designed to complement its contract research and sales operations, as well as grow organically.
Founded in 1998, privately held Novella is headquartered within North Carolina’s Research Triangle Park, and has more than 800 professionals based throughout North America and Europe. Quintiles employs more than 27,000 people worldwide, and generated $3.7 billion in revenue last year.
“Since our founding fifteen years ago, Novella has been committed to serving emerging companies by offering personal attention and flexibility in addition to our extensive therapeutic experience,” Richard Staub, Novella’s president and CEO, said in the statement. “By joining Quintiles, we will be able to extend the geographic reach of our services exponentially while remaining committed to the values and business approach that makes us a great partner to our customers.”
Quintiles said the acquisition is not expected to have any material impact on its 2013 earnings per share.