Chime Communications buys pH Associates

Shares of marketing firm Chime Communications rallied after it confirmed it has agreed to buy pharmaceutical market access and data firm pH Associates for an initial sum of £6.92m.

The initial consideration comprises £6.07m in cash, and £0.85m in cash representing working capital of PHA at acquisition that is surplus to requirements after PHA joins the group, Chime explained in a company statement.

Further tranches of deferred contingent payment of up to £14m may be payable depending upon the future trading performance of PHA, Chime added.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

PHA, whose clients include Abbott, Janssen Cilag, Novartis and Sanofi, will operate as part of Chime's healthcare division, OPEN Health.

"The acquisition of PHA is a very significant further step in the development of the market access discipline of Chime's healthcare business, OPEN Health," it said.

Chime expects the acquisition of PHA to be immediately earnings enhancing.

CJ