DANBURY, Conn. & RESEARCH TRIANGLE PARK, N.C.–(BUSINESS WIRE)–IQVIA Holdings Inc. (NYSE:IQV), a leading global provider of advanced analytics, technology solutions, and clinical research services to the life sciences industry, today announced the acquisition of the 40 percent minority share of Q2 Solutions from Quest Diagnostics (NYSE: DGX), the world leader in diagnostic information services, for $760 million, resulting in 100 percent ownership by IQVIA. The transaction has been financed through cash on hand and is not expected to impact IQVIA’s target net leverage ratio.
Q2 Solutions is a leading global clinical laboratory services organization that provides comprehensive testing, project management, supply chain, biorepository and biospecimen and consent tracking solutions for clinical trials. Established as a joint venture in 2015, IQVIA previously owned a 60 percent majority share and Quest Diagnostics owned a 40 percent minority share.
Quest will remain the strategic preferred laboratory provider for Q2 Solutions clients under a multi-year agreement to provide a range of complementary lab testing capabilities to augment Q2 Solutions’ core offerings, extending its industry leading suite of services.
The transaction is expected to be approximately $0.12 accretive to IQVIA’s 2021 Adjusted Diluted EPS and at least $0.18 accretive to 2022 Adjusted Diluted EPS. As a result, IQVIA is raising its full-year 2021 Adjusted Diluted EPS guidance as follows:
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Updated |
Prior(1) |
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Adjusted Diluted EPS |
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$7.89 – $8.20 |
$7.77 – $8.08 |
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Growth (VPY%) |
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22.9% – 27.7% |
21.0% – 25.9% |
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(1) Provided on Q4 2020 earnings call on February 10, 2021 |
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As IQVIA previously owned the majority share of the joint venture, it has consolidated 100 percent of Q2 Solutions’ revenue and Adjusted EBITDA into its reported financial statements. As a result, the acquisition of Quest’s 40 percent interest will not impact IQVIA’s revenue and Adjusted EBITDA.
About IQVIA
IQVIA (NYSE:IQV) is a leading global provider of advanced analytics, technology solutions, and clinical research services to the life sciences industry. IQVIA creates intelligent connections across all aspects of healthcare through its analytics, transformative technology, big data resources and extensive domain expertise. IQVIA Connected Intelligence™ delivers powerful insights with speed and agility — enabling customers to accelerate the clinical development and commercialization of innovative medical treatments that improve healthcare outcomes for patients. With approximately 70,000 employees, IQVIA conducts operations in more than 100 countries.
IQVIA is a global leader in protecting individual patient privacy. The company uses a wide variety of privacy-enhancing technologies and safeguards to protect individual privacy while generating and analysing information on a scale that helps healthcare stakeholders identify disease patterns and correlate with the precise treatment path and therapy needed for better outcomes. IQVIA’s insights and execution capabilities help biotech, medical device and pharmaceutical companies, medical researchers, government agencies, payers and other healthcare stakeholders tap into a deeper understanding of diseases, human behaviour and scientific advances, in an effort to advance their path toward cures. To learn more, visit www.iqvia.com.
