SOMERSET, N.J., March 13 /PRNewswire-FirstCall/ -- Ventiv Health, Inc. today announced that it has signed a definitive agreement to acquire Jeffrey Simbrow Associates Inc. (JSAI), Canada’s leading healthcare marketing and communications agency.
Under the terms of the agreement, Ventiv will acquire JSAI for CAD$10.0 million in cash and stock, plus earn-out payments for exceeding specified financial targets. The transaction is expected to close at the beginning of April.
JSAI will operate under Ventiv Communications, as part of the inChord Communications division. inChord provides global advertising and marketing services for its pharmaceutical clients through a network of agencies in 10 top worldwide markets. This acquisition strengthens JSAI’s role as the Canadian affiliate within the network.
Through this acquisition, inChord will partner with JSAI to develop and execute marketing campaigns throughout Canada for healthcare clients. In addition, JSAI adds a professional training capability for healthcare marketers to Ventiv Health’s suite of services. JSAI provides a curriculum of interactive skill-based seminars designed to enhance the competencies of healthcare marketing executives and help them to become more effective brand builders.
Eran Broshy, Ventiv’s CEO, stated, “JSAI is widely recognized as Canada’s leader in healthcare marketing. The agency’s stellar capabilities including strategic counsel, pharmaceutical and DTC marketing expertise, and long-term relationships with clients make it particularly strong addition to our overall services offerings and geographic mix.”
Jeffrey Simbrow, CEO of JSAI, and Karen Auslander, president of JSAI, said, “Our agency has had a great partnership with inChord for several years, which has resulted in many successful global marketing programs for our clients. We are excited to be solidifying that relationship by joining the Ventiv Health family.”
“As our clients are increasingly looking to us for support with their global advertising campaigns, having strong partners in the key markets is critical,” said Phil Deschamps, CEO of GSW Worldwide, one of inChord’s global advertising agencies. “JSAI is an ideal partner, not only because of their exceptional expertise in Canada, but because their services broaden our overall collection of capabilities.”
Upon the close of the transaction, JSAI will become a wholly owned subsidiary of Ventiv. The acquisition is expected to be immediately accretive to Ventiv’s earnings, with further details to be provided during Ventiv’s March 14, 2006 earnings call.
About Jeffrey Simbrow Associates
With offices in Toronto and Montreal, JSAI is the largest healthcare- focused advertising and marketing agency in Canada and is internationally recognized for its expertise in marketing management training. In addition to offering a full range of marketing solutions including advertising, media placement and strategic planning, JSAI provides a curriculum of interactive skill-based seminars designed to enhance the competencies of healthcare marketing executives and help them to become more effective brand builders. For more information on JSAI, visit www.jsai.com.
About Ventiv Health
Ventiv Health, Inc. is the leading provider of commercialization and complementary services to the global pharmaceutical, life sciences and biotechnology industries. Ventiv delivers its customized clinical, sales, marketing and communications solutions through its three core business segments: Ventiv Clinical, Ventiv Communications and Ventiv Commercial. Ventiv Health works with over 150 pharmaceutical and life sciences clients, including 18 of the top 20 global pharmaceutical companies. For more information, visit www.ventiv.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks that may cause Ventiv Health’s performance to differ materially. Such risks include, without limitation: changes in trends in the pharmaceutical industry or in pharmaceutical outsourcing; our ability to compete successfully with other services in the market; our ability to maintain large client contracts or to enter into new contracts; and, our ability to operate successfully in new lines of business. Readers of this press release are referred to documents filed from time to time by Ventiv Health, Inc. with the Securities and Exchange Commission for further discussion of these and other factors.
Ventiv Health, Inc.
CONTACT: Investors/Corporate: John Emery, CFO of Ventiv Health, Inc.,+1-732-537-4804, or investor@ventiv.com ; or Ventiv Media Contact: FeliciaVonella of Ventiv Health, Inc., +1-212-308-7155, or fvonella@ventiv.com ;or inChord Media Contact: Marcia Frederick of inChord Communications Inc.,+1-614-543-6281, or mfrederick@inchord.com
