Report: IMS Health In Private-equity Sales Talks

NEW YORK (AP) — Shares of IMS Health Inc. jumped Monday after a media report indicated the health care data firm is collecting sales offers from private-equity firms.

The Wall Street Journal reported Monday that IMS Health is in "advanced discussions" to sell the company, possibly getting a 30 percent premium on shares for a value of $3.5 billion.

The stock rose 49 cents, or 2.8 percent, to $18.33 in after-hours trading after surging more than 21 percent to close at $17.84. Shares hit a 52-week high during the session.

The paper, citing people familiar with the matter, said Norwalk, Connecticut-based IMS received bids late last week from private-equity firms including TPG, Silver Lake and BC Partners. A deal could be completed next month, according to the report.

IMS representatives could not be reached for comment Wednesday night. The company is scheduled to report its third-quarter financial results Thursday.

"This is a company who's performance has struggled lately," said Thomas Weisel Partners analyst Steven Halper. "This last downturn really hurt."

In July, the company said its second-quarter profit plunged 19 percent as customers pulled back on spending. It also announced layoffs of 850 workers.

Halper said despite the pain of the current downturn, the company has a business model that can support debt.

"They've been trying to remake this business for the last several years and going private could take the pressure off them," Halper said.