Syneos Health Agrees to Acquire Synteract

Syneos Health, a fully integrated biopharmaceutical solutions organization combining a CRO (Contract Research Organization) and a CCO (Contract Commercial Organization), has agreed to acquire Synteract, a full-service CRO focused on the rapidly growing emerging biopharma segment.

Synteract provides deep therapeutic expertise in oncology, rare and orphan diseases, neuroscience, dermatology, and pediatrics. Its client base comprises primarily pre-revenue companies, a segment in which Syneos Health has growth opportunities. Synteract’s 700 employees across North America, Europe, Asia Pacific and Africa have supported more than 4,000 Phase I-IV clinical trials across 26,000 sites in more than 60 countries.

Expanding into a High-Growth Segment

The acquisition will enhance Syneos Health’s position in the marketplace, particularly for serving customers across the small to mid-sized (SMID) category – further diversifying the company’s customer base and expanding support to the high-growth pre-revenue segment.

The transaction also provides significant revenue synergy opportunities, as Syneos Health brings scale and new capabilities to Synteract’s unique customer base while maintaining Synteract’s laser-focus on the emerging biopharma segment. Building on Syneos Health’s track record of delivering cost synergies, the company will also leverage its global infrastructure and integration expertise to optimize operational efficiencies and drive improved margins.

For Synteract customers seeking alternatives to traditional product development and commercialization options, they will also have access to Syneos One, providing comprehensive end-to-end capabilities to maximize asset value.

“Synteract is one of the leading mid-sized, late-stage-focused CRO platforms with global reach and an attractive focus on the highest growth customer segment in the CRO space fueled by near-record funding levels,” said Alistair Macdonald, chief executive officer, Syneos Health. “With Synteract, we will strengthen our leadership across the entire SMID category while we continue to drive growth among large biopharma customers. Importantly, we share operating and cultural philosophies built around finding the best combination of product, process and technology to fuel innovation. I look forward to welcoming Synteract to the Syneos Health family, as we collectively work to change patients’ lives.”

“Joining Syneos Health combines our emerging biopharma expertise and expands our differentiated delivery model,” commented Steve Powell, chief executive officer, Synteract. “We are excited to join the Syneos Health team, as they provide increased global scale, service breadth and the technology infrastructure that will drive continued growth.”

Upon the transaction closing, Synteract will maintain its brand, operating as a Syneos Health Business Unit.

The company expects to close the transaction by the end of 2020, subject to the satisfaction of customary closing conditions.