Terms of the deal call for Quintiles to swap 0.384 shares of its stock for each share of IMS for total consideration of $26.53, based on Monday's closing price. Post-deal IMS holders would own about 51.4% of the combined company, which would be run by IMS chairman and CEO Ari Bousbib.
Share of Quintiles closed down 2%, or $1.64 per share, to $67.46. IMS ticked down 95 cents, or 3.5%, to a close of $25.92 per share.
Quintiles of Research Triangle Park, N.C., specializes in offering product development advice including clinical trial design and monitoring to pharmaceutical clients, while IMS of Danbury, Conn., tracks data on prescriptions, medical claims and drug usage. Together, the companies say they would offer a broad range of healthcare information, technology and services to the global pharmaceutical industry.
Quintiles CEO Tom Pike in a statement said the deal "addresses life-science companies' most pressing needs," namely "to transform the clinical development of innovative medicines, demonstrate the value of these medicines in the real world and drive commercial success."
The deal should also allow the companies to extract about $100 million in annual costs within three years.
Following the deal, the companies said they would maintain dual headquarters in North Carolina and Connecticut, with Bousbib serving as chairman and CEO and Pike as vice chairman. The combined board will feature six directors appointed by each current board.
Bousbib in a statement said the combination "brings together leading technology and analytics with deep scientific expertise delivered on a global scale by our 50,000 immensely talented professionals in more than 100 markets."
The companies anticipated the deal would close in the second half of 2016, subject to shareholder votes and other customary conditions. Holders of about 54% of IMS's common shares and owners of about 25% of Quintiles' stock have entered into agreements to vote in favor of the transaction.
Quintiles was taken private by Bain Capital, TPG Capital and 3i Group for $3 billion in 2008, and returned to the public markets in 2013. (The private equity firms had 8.3%, 6% and 5.2% stakes, respectively, as of March 3, Securities and Exchange Commission filings show.) IMS, meanwhile, has been an active buyer of health data companies, doing at least six deals since 2013, including its 2014 purchase of the customer relationship management division of Cegedim