Research Triangle Park, NC - September 18, 1996 - Quintiles Transnational Corp. (Nasdaq: QTRN) announced today the signing of a definitive agreement to acquire BRI International, Inc., a global contract research organization based in Arlington, Va. Quintiles announced in July that it had entered into a non-binding letter of intent to acquire BRI.
The definitive agreement calls for an exchange of 100 percent of BRI stock for approximately 1.9 million shares of Quintiles stock. Completion of the acquisition, which is subject to BRI shareholder approval and regulatory approval, is expected later this year. Quintiles also will enter into employment agreements with certain BRI employees, including Chairman and Chief Scientific Officer Frank L. Hurley. The transaction is expected to be accounted for as a pooling of interests.
The planned acquisition would enhance Quintiles' resources and expertise in worldwide clinical and data management services, and would add significantly to its capabilities in medical devices and regulatory compliance.
"Both BRI and Quintiles' clients will benefit from expanded capabilities and efficiencies," said Dennis Gillings, Ph.D., Chairman and Chief Executive Officer of Quintiles. "We are committed to preserving the excellent relationships and ongoing contracts developed with the clients of both companies. BRI's excellent reputation and track record in the areas of medical devices and regulatory consulting significantly expands our ability to meet the global needs of the pharmaceutical, biomedical and medical device industries."
Hurley said, "By joining with Quintiles, we increase substantially our ability to provide global services in a more efficient and cost-effective manner. It's a winning proposition for everyone involved -- BRI, Quintiles and our clients."
Net revenue for BRI is expected to be approximately $54 million in 1996. The acquisition, if completed, is expected to be slightly accretive to Quintiles' 1996 fourth quarter earnings per share, excluding a one-time charge of approximately $4.8 million related to the transaction. The acquisition could add up to 5 cents to Quintiles' earnings per share in 1997.
Headquartered in Arlington, Va., BRI has 445 employees and provides a broad range of services to the pharmaceutical, biotechnology and medical device industries. The company operates six offices in the U.S., three in the United Kingdom, two in Belgium and one in France. BRI is among the world's 10 largest contract research organizations and is the largest medical device CRO.
Information contained in this press release contains "forward-looking statements." These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, whether or not the proposed acquisition actually occurs, the ability of the acquisition to be integrated with Quintiles' current operations, actual operation performance, the ability to maintain large client contracts or to enter into new contracts, and the actual costs of the acquisition.
Quintiles' worldwide services encompass healthcare product development and information management. Quintiles offers globally integrated research and development and strategic consulting services to pharmaceutical, biotechnology, medical device and healthcare management industries, as well as local and national governments. The company's core competencies include clinical research and data management, and consulting on healthcare policy, disease management and regulatory issues. Quintiles is headquartered near Research Triangle Park, NC, and has 41 operating units in 19 countries.