EQT Private Equity and Goldman Sachs to acquire Parexel

Parexel, a global clinical research organisation (CRO), announced the execution of a definitive merger agreement under which it will be acquired by EQT IX fund (EQT Private Equity) and the private equity business within Goldman Sachs Asset Management (Goldman Sachs) from Pamplona Capital Management LP for $8.5 billion.

“With the market for outsourced clinical research services anticipated to grow at a conservative CAGR of 8 to 9 per cent, our focus remains on advancing and innovating Parexel to meet our customers’ needs across the evolving clinical development landscape. EQT and Goldman Sachs support this vision and are committed to investing in Parexel and our people to capitalise on this exciting market opportunity and make a difference for patients,” said Jamie Macdonald, CEO, Parexel.

Eric Liu, Partner and Global Co-Head of Healthcare at EQT commented, “We have followed Parexel closely during the past few years and have been impressed by the company’s development and trajectory. Our investment in Parexel reflects EQT’s thematic focus on the life sciences industry, as well as our commitment to partner with businesses that have a positive impact on society.”

Jo Natauri, Partner and Global Head of Private Healthcare Investing within Goldman Sachs Asset Management, commented, “We believe this investment will accelerate Parexel’s growth as it builds on the company’s global footprint, strong operational capabilities and expansive healthcare network.”

John Halsted, Managing Partner, Pamplona Capital Management, commented, “We’re very proud of Parexel’s progress over the past four years and the important work they do in helping bring exciting new therapies to patients in need. In particular, they successfully adapted the business to work in the midst of a global pandemic and supported the development of therapies to combat the COVID-19 pandemic itself. We wish them every success in their next phase of growth.”

The transaction is subject to customary conditions, including receipt of applicable regulatory approvals. Evercore acted as the financial advisor to Parexel, and Kirkland & Ellis LLP provided legal counsel in connection with the transaction. Goldman Sachs and Jefferies LLC acted as financial advisors to EQT Private Equity and Goldman Sachs Asset Management, and Simpson Thacher & Bartlett LLP provided legal counsel in connection with the transaction.