UDG Healthcare swallows Vynamic in up-to-$32m deal

International healthcare services provider UDG Healthcare confirmed the acquisition of US-based healthcare industry management consulting firm Vynamic on Wednesday, for a total consideration of up to $32m.

The FTSE 250 firm said Vynamic, headquartered in Philadelphia, primarily offered brand strategy, planning and launch, advanced commercial operations capabilities, strategic transformation and integration, product design and implementation, change leadership and business intelligence and analytics.

It said the acquisition of Vynamic was in line with Ashfield's strategy to expand its advisory services to the healthcare industry, and followed the acquisition of STEM in October 2016.

“We are delighted to announce the acquisition of Vynamic, which expands our advisory offering and adds an additional capability offering for our global healthcare clients,” said UDG CEO Brendan McAtamney.

“Vynamic is an excellent fit for UDG Healthcare, both strategically and culturally, and demonstrates our strategic commitment to developing our market leading positions through geographic and services expansion.”

The board said it was the group's first management consultancy acquisition, offering services which were “highly complementary” to the existing range of services provided by Ashfield.

Vynamic was being acquired for an initial consideration of $22m, with an additional consideration of up to $10m payable over the next three years, based on the achievement of agreed profit targets.

The business had been acquired for an upfront multiple of around seven times EBIT.

“Joining UDG Healthcare creates tremendous value for our clients and the people of Vynamic,” said its founder and CEO Dan Calista.

“We will have additional capabilities to service clients around the world, while creating new career opportunities for our people in a company culture that aligns with Vynamic's values.”

Additionally, UDG Healthcare confirmed it had also received competition approval for the acquisition of Sellxpert, a German contract sales outsourcing business, for a total potential consideration of up to $14.4 million as announced on 23 May.