Parexel To Be Bought In a $5 Billion Deal By Pamplona Capital

By Tomi KilgoreMarketsMarketWatch Pulse

Parexel International Corp. announced Tuesday an agreement to be acquired by private-equity firm Pamplona Capital Management in a deal valued at $5.0 billion. Under terms of the deal, Pamplona said it will pay $88.10 in cash for each of the biopharmaceutical company's shares outstanding, a 5.0% premium to Monday's closing price of $83.92, but 27.9% above "unaffected" May 5 closing price of $68.86, which was just before reports of a potential buyout. The deal is expected to close early in the fourth quarter. Parexel's stock was up 8.1% in premarket trade prior to a trading halt. It has soared 35% over the past three months to close Monday at a record high, while the S&P 500 has gained 9.6%.

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