Health IT giant Cerner plans to acquire the health division of Kantar Group for $375 million to advance clinical research development.
Kantar Health provides data, analytics, and research to the life sciences industry.
With this acquisition, Cerner plans to harness data to improve the safety, efficiency and efficacy of clinical research across life sciences, pharmaceuticals and health care at large, the company said in a press release. The health IT company is looking to create a leading data insights and clinical research platform.
The acquisition is expected to allow Cerner’s Learning Health Network client consortium to more directly engage with life sciences for funded research studies.
“Cerner launched the Learning Health Network with our provider clients to advance a shared vision: treat global diseases more effectively through an acceleration of clinical research,” said Donald Trigg, president at Cerner in a statement.
“Kantar Health has incredible health economics and medical affairs expertise, differentiated real-world data assets and strong relationships with the world’s leading life science companies. It offers us an amazing opportunity to drive cross-industry collaboration that can change health outcomes around the world.”
Kantar Health has over $150 million of annual revenue, according to Cerner.
Cerner's Learning Health Network offers health systems complimentary access to a network of bi-directional, de-identified data resources. The aim is to help advance research efforts and provide opportunities to generate revenue with funded research studies from life science companies.
Kantar Health’s proprietary syndicated data products including CancerMPact, Claritis, National Health & Wellness Survey, and its broader oncology, rare disease, and multi-therapeutic expertise are used today by all of the top 20 life science companies to further their real-world evidence, commercial and clinical research efforts, the company said.
The combination of Cerner and Kantar Health is expected to enable a two-sided collaboration between providers and the pharmaceutical industry, where researchers can generate insights and use differentiated real-world data assets and expertise to address the most complex clinical research questions.
RELATED: Shafer says COVID-19 pandemic has driven 'burst of innovation' at Cerner
“At Kantar Health, we’re proud of our heritage and reputation as consultants to the world’s leading life sciences manufacturers. We are excited about this next chapter, where our real-world evidence and commercial data assets will be powered by Cerner,” said Lynnette Cooke, CEO of Kantar Health in a statement.
“There is a strong cultural fit between the two organizations, grounded by our shared vision to increase access and affordability for patients around the world. We expect the combination of our expertise and assets with Cerner’s technology and unique insights into patients will enable a step-change in the way healthcare is developed and delivered, resulting in improved patient outcomes," Cooke said.
The acquisition is anticipated to close in the first half of 2021, subject to regulatory approval, employee consultations and other conditions, and is not expected to have a material impact on Cerner’s earnings in 2021.
Harris Williams acted as exclusive financial advisor; Weil, Gotshal & Manges LLP acted as legal advisor; and EY acted as accounting, tax, operational, technology and separation advisors to Kantar Health.
Latham & Watkins LLP acted as legal advisor; EY provided financial, tax and HR due diligence; and its EY-Parthenon consulting practice acted as strategic, commercial and operational advisors to Cerner.