Piramal Enterprises (PEL) on Friday said its subsidiary PEL DRG Dutch HoldCo BV, also the holding company for Decision Resources Group (DRG), has signed a definitive agreement for the sale of DRG to Clarivate Analytics for a consideration of $950 million. PEL will use the money to reduce debt and to explore organic and inorganic growth opportunities.
On Friday, shares of PEL closed 5.18% higher on the BSE at Rs 1,627.05.
DRG is a provider of healthcare analytics, data and insight products and services to pharma, biotech and medical technology companies. PEL had initially invested $650 million in 2012 to acquire DRG out of which $260 million was infused as equity. Ajay Piramal, chairman, the Piramal Group said besides the ongoing equity capital raise in PEL, the transaction will strengthen the company's balance sheet, marking another step towards significantly unlocking value in future. "We are pleased to have grown DRG's market leadership over the last few years and believe that through this combination, Clarivate, with its size and scale, is well positioned to further accelerate DRG's growth potential," he said.
Jerre Stead, executive chairman and CEO, Clarivate Analytics, said the acquisition, which doubles the size of the firm’s life sciences business, is accretive to its 2020 earnings and sets it up as an essential, end-to-end, industry-leading data and analytics provider in the highly attractive life sciences ecosystem.