Inotiv Makes $545 Million Bid For Envigo RMS Holdings To Fortify Research And Drug Discovery Platforms

Shares of Inotiv Inc. traded 27% higher to a new 52-week high after the company reported it entered into an agreement to acquire Envigo RMS Holding Corp. in a cash and stock deal valued at $545 million which will serve to create a one-stop-shop, discovery-to-approval solution for drug developers.

Before U.S. markets opened for trading today, contract research organization Inotiv Inc. (NOTV:Nasdaq), which specializes in providing nonclinical and analytical drug discovery and development services, announced that it entered into an agreement to purchase global research models and services provider Envigo RMS Holding Corp. in a combination cash and stock deal.

Inotiv advised that when the transaction is finalized, the new combined company will "enable drug developers to access products and services for the entirety of discovery and nonclinical development within one organization."

The acquisition terms place an enterprise value for Envigo of approximately $545 million. Under the terms of the agreement total consideration paid to Envigo will include $200 million in cash and 9,365,173 shares of Inotiv's common stock. When joined together, Inotiv is expected to have a total enterprise value of around $1.2 billion.

The transaction is expected to close in the fourth quarter of the calendar year 2021, subject to approvals from both Inotiv's and by Envigo's shareholders, other customary closing conditions, and required regulatory approvals. When the purchase is completed, on a fully diluted basis, existing Inotiv shareholders will own about 64% of the combined company and Envigo shareholders will own the remaining 36%.

Inotiv's President and CEO Robert Leasure Jr. commented, "Evolving complexity in the disease research space is creating additional demand for research models and continued innovation in biopharma is increasing demand for specialty and disease-specific models…The complementary nature of Inotiv and Envigo is expected to accelerate the movement of innovative drugs and medical devices through the discovery and preclinical phases of development. Supported by deep, in-house expertise and scientific capabilities, we're building a comprehensive contract pharmaceutical research solutions provider with a full spectrum of discovery and nonclinical services and research models into a unique, one-stop-shop, discovery-to-approval solution for drug developers."

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Disclosure: 1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own ...

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