Feb 3 (Reuters) - PharmaNet Development Group Inc , a clinical development services provider, agreed to be bought by private-equity investment firm JLL Partners Inc for a cash price of $5.00 a share, nearly four times its Monday closing price.
The deal values the company at about $98 million based on the number of shares outstanding as of Oct. 31, according to Reuters Data.
The deal will be financed by a $250 million equity commitment from JLL, which will begin a tender offer for PharmaNet's shares.
JLL Partners is a New York-based firm with about $4 billion of capital under management.
PharmaNet said the deal includes the necessary funds to retire the $144 million principal amount of its outstanding convertible notes.
UBS Investment Bank is acting as exclusive financial adviser to PharmaNet, and Morgan, Lewis & Bockius LLP is acting as the company's legal counsel.
Shares of the Princeton, New Jersey-based company were trading up 244 percent, or $3.28, at $4.61 early Tuesday morning. The stock was the top percentage gainer on Nasdaq.
(Reporting by Anuradha Ramanathan in Bangalore; Editing by Amitha Rajan) Keywords: PHARMANET/TAKEOVER (anuradha.ramanathan@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800: Reuters Messaging: anuradha.ramanathan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The deal values the company at about $98 million based on the number of shares outstanding as of Oct. 31, according to Reuters Data.
The deal will be financed by a $250 million equity commitment from JLL, which will begin a tender offer for PharmaNet's shares.
JLL Partners is a New York-based firm with about $4 billion of capital under management.
PharmaNet said the deal includes the necessary funds to retire the $144 million principal amount of its outstanding convertible notes.
UBS Investment Bank is acting as exclusive financial adviser to PharmaNet, and Morgan, Lewis & Bockius LLP is acting as the company's legal counsel.
Shares of the Princeton, New Jersey-based company were trading up 244 percent, or $3.28, at $4.61 early Tuesday morning. The stock was the top percentage gainer on Nasdaq.
(Reporting by Anuradha Ramanathan in Bangalore; Editing by Amitha Rajan) Keywords: PHARMANET/TAKEOVER (anuradha.ramanathan@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800: Reuters Messaging: anuradha.ramanathan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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