UDG Healthcare plc - UDG Healthcare plc - Acquires Cambridge BioMarketing for up to $35m

Davy Research
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The acquisition of Cambridge BioMarketing is UDG’s fifth acquisition this financial year, bringing total capital deployment on M&A to over $200m in FY2018. Similar to the $32m Vynamic deal last week, today’s $35m transaction is in-line with UDG’s strategy of growing Ashfield’s presence in both the communications/advisory space and the US market. It also reinforces UDG’s ability to transact at attractive multiples (estimated 7.5x EBIT). We estimate that the deal is c.2.5% accretive to earnings on a pro-forma basis.