eResearchTechnology, Inc., a global provider of technology and services to the pharmaceutical, biotechnology, and, medical device industries, announced today that it has agreed to acquire the research services division of CareFusion Corporation (CRS) for $81 million in cash. CRS is a provider of respiratory diagnostics services and manufacturer of diagnostic devices and also offers cardiac safety and ePRO services. All will be integrated into ERT's existing business. ERT stated that the transaction is expected to close in June 2010 pending satisfaction of customary closing conditions. No stockholder approvals are required.
Dr. Michael McKelvey, President and CEO of ERT, said, "ERT is building upon our leadership in cardiac safety and our expertise as a service and technology provider to combine with one of the clinical research industry's leading respiratory diagnostics core labs, technology companies, and diagnostic device manufacturers. This transaction delivers on our stated strategy to leverage our cardiac platform and operating model to more broadly support the centralized collection, interpretation and delivery of clinical efficacy and safety information critical for all phases of clinical research and to provide support to leverage our core expertise into the larger healthcare market." Dr. McKelvey added, "CRS has developed an impressive business providing integrated, customized solutions relating to pulmonary function testing and other services for its clients. This acquisition will provide our existing and new clients in the clinical research industry with the ability to more efficiently capture, process, and distribute clinical data during all phases of drug development."
"With its strong client relationships and global market presence, our Research Services group has achieved a solid reputation in the industry," said Vivek Jain, President of Medical Technologies and Services for CareFusion. He continued, "The business is an excellent strategic fit with ERT and will be able to grow faster aligned with a leading service provider to the pharmaceutical industry."
Dr. McKelvey continued, "In addition to adding an entire new line of business to ERT, the acquisition also brings immediate added scale to our two current lines of business - cardiac safety and electronic patient reported outcomes (ePRO). Between cardiac safety, respiratory diagnostics, and ePRO, we will be better positioned to address a clinical research market estimated at approximately $1.3 billion annually and to extend our capabilities to further innovate and integrate offerings for the benefit of our clients. Furthermore, with the addition of CRS's leading device manufacturing capability, our ability to grow into other parts of clinical research and healthcare delivery will be greatly facilitated."
Paul ter Grote, the President and General Manager of CRS, added, "We are excited to join ERT as this brings together two leading-edge companies whose reputations have been built on innovation, customer service and flexibility. As one organization, we will be able to offer an integrated suite of products and services to meet our clients' needs now and in the future. It is a natural and complementary strategic fit."
Dr. McKelvey concluded, "We have tremendous respect for the entire CRS organization that has built a very strong franchise in the respiratory diagnostics area. Both organizations are focused on improvement of the clinical trials process through the standardization and centralization of key clinical trial data. The strategic combination of ERT and CRS will add significant benefits to both our existing and new customers, and allow us to become a more valuable partner. Both organizations share a strong commitment to client satisfaction, quality, scientific leadership, innovation, and dedication to employees. We believe that the common cultures of both organizations are compatible and will facilitate the integration of our operations. ERT will continue to collaborate with all of its key CRO, Phase I, Academic Research Centers, device suppliers, and other strategic partners to promote speed, accuracy, quality, and reliability of data collection and reporting."