Piramal Enterprises Ltd (PEL) has agreed to sell the healthcare analytics unit Decision Resources Group to US-based Clarivate Analytics Plc for $950 million (about Rs 6,745 crore).
The billionaire Ajay Piramal-led business is going to get $900 million once when the deal closes and the remaining $50 million after 1 year, it said in a declaration on Friday. The deal will be finished on or prior to February 28, 2020, Piramal stated.
Piramal had acquired Decision Resources Group since 2012. It stated it had originally invested $650 million to get DRG. Of this, $260 million was infused as equity. The business has realized 2.3 times its original equity investment in rupee terms.
This was the biggest ever acquisition done by Piramal Healthcare, which had been diversifying into organizations beyond pharmaceuticals.
Ajay Piramal, chairman at Piramal Group, claimed along with the continuous equity capital raise in PEL, this specific transaction not just further fortifies the business’s balance sheet but additionally represents another step towards considerably unlocking value down the road.
The profits from the healthcare insights and the analytics company’s were Rs 1,330.74 crore ($187.34 million) for your financial year ended March 31, 2019, the declaration included.
For the suggested transaction, the board is going to convene a general meeting on February 13 to look for the approval of the shareholders of the business.
DRG, the high-value data, analytics, and insights business on the Piramal Group, specializes in allowing the world’s top medical, biotech, and pharma technology companies to reach business success in complex health markets with the development of excellent patient-centric commercial strategies.
Clarivate Analytics, a company worth more than $5 billion (about Rs 35,513 crore), is into providing analytics and insights to speed up the pace of innovation in its verticals. This acquisition is going to help them to enhance the commercialization of life-changing therapies.
The divestment is a part of the Piramal group’s deleveraging exercise and also comes after the latest announcement of fundraising of Rs 1,750 crore ($250 million) through among Canada’s most significant public pension funds, Caisse de depot et placement du Quebec (CDPQ) through preferential allotment last month. The infusion was an element of bigger fundraising worth Rs 5,400 crore ($770 million) which is going to include the rights issue.
Piramal Enterprises will be the largest businesses on the Piramal Group and is engaged in financial and pharmaceutical services, retail and wholesale funding across different sectors and real estate.
In June 2019, Piramal Enterprises sold the complete stake in Chennai-based Shriram Group’s Shriram Transport Finance for Rs 2,300 crore and also is further wanting to exit Shriram Capital Ltd, in which it has a 20% stake.
In the same month, VCCircle also found that India Resurgence Fund, a distressed fund that is a joint venture of The credit and Piramal Enterprises affiliate of private equity firm Bain Capital, will generate a corpus of $750 million (around Rs 5,250 crore) during the next few months to increase the investments in the troubled assets segment.