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
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
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
-
Water companies blocked from using customer money to pay “undeserved” bonusesThe regulator has blocked three water companies from using billpayer money to pay £1.5 million in exec bonuses
-
Will the Bitcoin price hit $100,000?With Bitcoin prices trading just below $100,000, we explore whether the cryptocurrency can hit the milestone.
