DURHAM, N.C. (WNCN) – Durham-based Quintiles, a key employer in the Triangle and a driving force in the area’s explosion in the field of clinical research, announced Tuesday morning that it is merging with IMS Health Holdings Inc.
The deal is said to be worth more than $23 billion.
The merged company will be named Quintiles IMS Holdings, Inc. and will continue to run dual headquarters in Durham and Danbury, Connecticut, Quintiles said in a news release. Quintiles is one of the largest employers in the Triangle and operates in 100 countries. The founder of Quintiles, Dr. Dennis Gillings, is a former professor in the UNC School of Public Health. Gillings will become the lead director of the new company.
Quintiles is one of the largest employers in the Triangle and operates in 100 countries. The founder of Quintiles, Dr. Dennis Gillings, is a former professor in the UNC School of Public Health. Gillings will become the lead director of the new company.
According to the Greater Durham Chamber of Commerce website, Quintiles is the eighth largest employer in the area, with 2,300 employees based in Durham. That’s nearly as many as the 2,437 who work for the city of Durham.
Business North Carolina, a widely respected business magazine, ranked Quintiles the 14th largest company in North Carolina – and the third largest in the Triangle, behind Raleigh’s Red Hat and Martin Marietta Materials.
The announcement Tuesday transforms Quintiles and also raises questions about the merged company’s future. The new CEO will come from IMS Health and the majority of the stock will go to IMS shareholders.
Quintiles stock dropped more than $5 in early trading Tuesday.
Quintiles spokesman Phil Bridges said there are “no immediate plans to modify locations or employee mix” at the two locations.
Bridges said the merger, instead, “is intended to accelerate growth in the combined company. The portfolios of the two companies are complementary and there is very little overlap in the service portfolios of each company.”
Quintiles CEO Tom Pike praised the deal in a news release.
“This combination addresses life-science companies’ most pressing needs: to transform the clinical development of innovative medicines, demonstrate the value of these medicines in the real world, and drive commercial success. We are bringing together two best-in-class leaders. I’m confident that together we will make our clients even more successful,” Pike said.
Ari Bousbib, chairman and chief executive officer of IMS Health, will become chairman and chief executive officer of the merged organization while Pike will become vice chairman of the combined company.
“This powerful combination brings together leading technology and analytics with deep scientific expertise delivered on a global scale by our 50,000 immensely talented professionals in more than 100 markets. Our combined business will accelerate growth, yield greater operating efficiencies and provide more flexibility for future expansion,” Bousbib stated in a release on Quintiles’ website.
IMS Health shareholders will own approximately 51.4 percent of the shares of the combined company and Quintiles shareholders will own approximately 48.6 percent of the combined company.