• Both acquisitions are good cultural & strategic fit and meet the company’s financial hurdle rates while further expanding its current capabilities.
• UDG would be financing both transactions from its existing cash & debt facilities.

UDG Healthcare plc, (UDG), a leading Ireland-based healthcare advisory service provider, has reportedly announced that it has acquired American healthcare consultancy, Putnam Associates (Putnam) and British healthcare policy & communications consultancy, Incisive Health (Incisive).

Reports cite, the two transactions would be significantly strengthening UDG’s Ashfield Communications & Advisory business. The two acquisitions would be for a combined consideration of approximately $106 million with Putnam costing $88.6 million and Incisive costing $17.7 million.

According to a report by Pharmafield, the Putnam acquisition would be consolidating Ashfield’s growing advisory pillar by introducing significant expertise in product pricing, commercialization, reimbursement as well as market access strategy. Meanwhile, the Incisive acquisition would be adding specialist capability in the public health advocacy domain, supporting clients in obtaining a secure marketing access for their respective brands alongside broader communication services.

The Putnam deal would see an upfront payment of $60 million in addition to a $20.1 million earn-out for over three years along with a further $8.5 million five year earn-out. The Incisive deal would be seeing an initial consideration of approximately $10.4 million with a $7.3 million earn-out that would be payable over a three-year period.

The CEO of UDG Healthcare, Brendan McAtamney stated that the company is thrilled to announce the acquisition, which would be further enhancing the capabilities of its Ashfield Communications & Advisory. McAtamney further added that both Putnam and Incisive acquisitions are a good cultural & strategic fit for the company and meet its target financial-hurdle rates while also expanding its present capabilities.

According to reports, UDG would be financing both the transactions from its existing cash & debt facilities. The transactions are expected to provide a return on capital that is employed in excess of the company’s 15% target within three years.

Source Credit:

https://www.udghealthcare.com/media/press-releases/udg-healthcare-significantly-strengthens-its-ashfield-communications-and-advisory-business-with-two-acquisitions-for-a-combined-consideration-of-up-to-106-million

https://pharmafield.co.uk/pharma_news/udg-healthcare-acquires-putnam-associates-and-incisive-health/