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Controlling the flow of information
BOSTON—PAREXEL Intl. Corp. has acquired all of the outstanding equity securities of Liquent Inc., a global provider of regulatory information management (RIM) solutions. The purchase price was approximately $72 million (which was adjusted at closing to reflect Liquent's cash, indebtedness and working capital balances), and was funded through the expansion of one of the company's existing credit facilities.
Liquent provides an integrated platform of software solutions for regulatory submissions and product registration management, as well as a range of complementary business process outsourcing capabilities.
Prior to the sale, Liquent was owned by Marlin Equity Partners. Liquent was founded in 1994, and its clients include more than 200 biopharmaceutical and life-science companies. With headquarters in Horsham, Pa., and additional offices in the United Kingdom, Germany and India, the company employs nearly 300 individuals.
"Liquent is a very strong player in the important and growing market of regulatory information management technology and services solutions," says Josef von Rickenbach, chairman and CEO of PAREXEL. "The addition of Liquent strengthens PAREXEL's Perceptive Informatics and its regulatory solution offerings and enables PAREXEL to provide a stronger end-to-end range of software and outsourcing solutions across development, regulatory and commercialization. In the end, this benefits clients because it allows PAREXEL to provide a more complete suite of offerings."
Through Liquent's flagship software platform, InSight, PAREXEL's clients will have access to comprehensive regulatory agency submission planning, viewing, tracking, publishing and registration management throughout the entire lifecycle of a medicinal entity, says von Rickenbach.
"We expect the acquisition will also benefit the PAREXEL Consulting and Medical Communications Services business, where we will be able to leverage Liquent's significant expertise in regulatory information management outsourcing through its Liquent Direct solutions," he adds.
Clients are looking for fewer strategic partners that can provide a broader range of service and technology solutions, von Rickenbach notes.
"PAREXEL has a full range of clinical outsourcing services and a full range of clinical software capabilities, and Liquent has done the same thing from a regulatory perspective. Liquent will now be part of a full range of capabilities for clients and will be afforded the opportunity to get involved earlier in the development process," he says.
For a year or so, Liquent will largely continue to operate as a distinct service line within PAREXEL'S Perceptive Informatics group. Integration teams will be established to evaluate the appropriate points of future integration to maximize the combined services and technologies to serve current and prospective customers. The Liquent management team will continue to run their operation and PAREXEL "welcomes their expertise and the value their employees bring to PAREXEL's clients and employees," the company states.
Rick Riegel, the CEO of Liquent, will report to Xavier Flinois, the new president of PAREXEL's Perceptive Informatics unit. Perceptive Informatics is the technology subsidiary of PAREXEL and provides eClinical solutions that help customers maximize the benefits of an integrated clinical trial technology suite by providing flexible software-as-a-service, or SaaS, applications. The subsidiary offers a portfolio of products and services that includes medical imaging services, interactive voice response systems, clinical trials management systems, web-based portals, systems integration and patient diary applications.
In conjunction with the completion of the acquisition of Liquent, PAREXEL also updated its forward-looking financial guidance for the full fiscal year. The company anticipates reporting consolidated service revenue in the range of $415 million to $420 million for the second quarter of fiscal year, and in the range of $1.675 billion to $1.695 billion for fiscal year 2013 in its entirety. Of the increase, the Liquent acquisition is expected to contribute a small amount of service revenue in the second quarter and between $17 million and $23 million in service revenue during the second half of fiscal year 2013. Previously issued consolidated service revenue guidance was $400 million to $410 million for the second quarter and $1.63 billion to $1.66 billion for the fiscal year.