LONDON (ShareCast) - (Sharecast News) - Thermo Fisher has agreed to buy PPD, a provider of clinical research services to the pharma and biotech industry, for $17.4bn.
Under the terms of the deal announced on Thursday, Thermo Fisher will pay $47.50 a share in cash. This represents a premium of about 24% to the unaffected closing share price of PPD on 13 April.

Once the deal completes, PPD will become part of Thermo's Laboratory Products and Services segment.

Thermo Fisher's chairman, president and chief executive Marc N. Casper 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."

The deal is expected to be immediately and "significantly" accretive to Thermo's adjusted earnings per share, adding $1.40 in the first 12 months after close. Thermo expects to realise total synergies of about $125m by year three after close, consisting of approximately $75m of cost synergies and $50m of adjusted operating income benefit from revenue-related synergies.

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