Piramal Healthcare has decided to enter the healthcare information segment by acquiring 100 per cent stake in US-based firm Decision Resources Group (DRG) for Rs 3,400 crore. DRG is a debt free firm and the transaction is expected to get over by June 30, 2012, subject to customary regulatory approvals and closing conditions.
Following the completion of the DRG acquisition, Piramal will operate DRG as a stand-alone business. The company will remain head-quartered in Burlington, MA and will continue to be led by Peter Hoenigsberg, Chief Executive Officer, Decision Resources Group and the existing senior management team. Ajay Piramal, Chairman, Piramal Healthcare said, “We had sold our domestic business to Abbott Laboratories a few months back because we realised that we need to create a new business category in our company. We see a better cash flow from the healthcare information segment and DRG, which is a market leader in the US, will definitely help our business to grow further.”
Commenting on the deal, Hoenigsberg said, “Me and my team are excited to be a part of the Piramal Group and are confident that its expertise in acquiring, integrating and growing businesses will support our continued growth.”
DRG provides high quality, web enabled, predictive analytics via propriety databases and consulting services to the global healthcare industry. With 20 per cent CAGR since the last five years, it is a growing company in the $5.7 billion global healthcare information industry. The company predicts a revenue of $160 million in 2012. 48 of the top 50 global pharma companies are DRG’s customers and it has an overall customer retention rate of 95 per cent.
While signing off, Piramal said, “IMS ORG gives much more generic data whereas we will provide more in-depth research related data.”