SYNH - Syneos Health sales process likely didn't have many bidders - report

2023-05-10 15:06:34 ET

Syneos Health ( NASDAQ: SYNH ) likely saw a lot of interest from bidders before its sale to a private equity consortium on Wednesday, though not many offers were made.

"It was a very broad auction, meaning a lot of people came and took a look, but it wasn't an overly competitive auction, meaning very few chose to actually bid," CNBC's David Faber said early Wednesday, citing people familiar. "A lot of PE firms may have passed."

Earlier Syneos ( SYNH ) announced an agreement to sell itself to a PE consortium consisting of Elliott Investment Management, Patient Square Capital and Veritas Capital for $43 a share in cash. Bloomberg reported news of the deal on Tuesday.

Syneos ( SYNH ) rose 8.7% on Wednesday and the pop was likely muted after Reuters reported that the contract research firm was conducting a sales process in February.

Faber added that he hears there is a lot more activity among private equity firms, especially in the health care sector, then people may be thinking.

A Barclays analyst in March said Syneos ( SYNH ) may be worth toward t he midpoint of a range of $40-$53 a share in a potential takeover

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