A clinical trial technology company that serves the biopharmaceutical and clinical research organization sectors has been acquired in a $400 million private equity deal.
eResearch Technology (NASDAQ:ERT), a Philadelphia-based company, was acquired by affiliates of Genstar Capital in San Francisco.
ERT provides medical devices and services for setting up clinical trials and collecting data from global locations, data interpretation and new drug, biologic and device application submissions. Its cardiac safety unit collects, interprets and distributes electrocardiographic data and images used during clinical trials. Its respiratory solutions business is used by biopharmaceutical, healthcare organizations and CROs that are developing new compounds or assessing the efficacy of a drug or evaluating compounds that have an effect on pulmonary function.
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Another service it provides is technology for electronically reported patient outcomes, or ePRO, that can take the form of diaries or questionnaires for patients to communicate their experience with a drug or device. The computers used for this task have evolved into hand-held devices to ensure patient compliance.
Its majority stakeholder, Blum Capital, with a 9 percent stake in the business, supported the deal.
Last year, ERT had $184.9 million in revenue with net income of $9.1 million.
The company was founded in 1972 as Cardio Data Systems to provide electrocardiogram analysis. It expanded to the UK in 1987. It later changed its name to CDSResearchWorldwide and began providing clinical trial management. In 2000, it changed its name to ERT and in 2007, formed an alliance with Covance, a clinical research organization, in which Covance agreed to provide ERT’s centralized ECG services to its clients. Between 2007 and 2010, it made a series of acquisitions, including its $81 million purchase of CareFusion Research Services, to cement its global clinical trial management services business.
