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ERT , a global provider of technology and services to the pharmaceutical, biotechnology, and medical device industries, announced that it has agreed to acquire the research services division of CareFusion Corporation (CRS), for $81 million in cash. CRS is a provider of respiratory diagnostics services and manufacturer of diagnostic devices and also offers cardiac safety and ePRO services. All will be integrated into ERT’s existing business. ERT stated that the transaction is expected to close in June 2010 pending satisfaction of customary closing conditions. No stockholder approvals are required.
This acquisition brings a new line of business to ERT and also brings immediate added scale to the company’s two current lines of business – cardiac safety and electronic patient reported outcomes (ePRO). With the cardiac safety, respiratory diagnostics and ePRO businesses, ERT will be better positioned to address a clinical research market estimated at approximately $1.3 billion annually and to extend the company’s capabilities to benefit its clients. Furthermore with the addition of CRS’s device manufacturing capability, ERT now has the ability to grow into other parts of the clinical research and healthcare delivery markets.
Both organizations are focused on the improvement of the clinical trial process through the standardization and centralization of key clinical trial data. ERT will continue to collaborate with all of its key CRO, Phase I, Academic Research Centers, device suppliers, and other strategic partners to promote speed, accuracy, quality and reliability of data collection and reporting.
For calendar year 2009, assuming CRS had operated as a stand-alone business, CRS generated preliminary unaudited revenues of approximately $49.6 million. ERT anticipates that CRS will generate revenue growth of between 30% and 35% in calendar year 2010.