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 TPG Capital LP, Canada Pension Plan Investment Board (CPPIB) and
Leonard Green & Partners LP, which took IMS private in 2010 for $5.2
billion, including debt, chose JPMorgan as the lead underwriter
after interviewing investment banks late last week, the people said.
Morgan Stanley <MS.N> and Goldman Sachs <GS.N> would also lead the
offering, which is planned for 2014, the people said, asking not to
be named because the matter is not public.
While the private equity owners could also explore an outright sale
of Danbury, Connecticut-based IMS to another company, a public
offering is a more likely outcome, some of the people added.
IMS Health, TPG, CPPIB and Goldman Sachs declined to comment while
Leonard Green, JPMorgan and Morgan Stanley did not immediately
respond to requests for comment.
IMS Health provides prescription data to the pharmaceutical
industry, medical device makers, government agencies and other
companies in the healthcare sector. Founded in 1954, the company has
over 5,000 clients and operates in more than 100 countries according
to its website.
IMS Health has been highly acquisitive, buying 11 other companies
since its 2010 leveraged buyout, according to its website. Five of
these — Pygargus, Incential Software, 360 Vantage, Semantelli and
Appature — were acquired just this year. The acquisition of Pygargus,
a life sciences advisory and analytics firm based in Sweden, was
announced last week.
The company has posted lackluster revenue growth since 2009, yet
these acquisitions, cost cuts and restructuring initiatives have
enabled it to grow its free cash flow, after capital expenditures,
to more than $150 million this year, according to Moody's Investors
Service Inc.
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Its private equity owners have taken advantage of the strong cash
flow to draw $1.95 billion in dividends from the company in the last
14 months by having it borrow, according to Moody's.
Private equity firms have sought to unload their portfolio companies
this year as stock markets have enjoyed strong valuations.
This year ranked as the strongest for U.S. IPOs since 2000 by dollar
volume, according to Thomson Reuters data, as large floats such as
Hilton Worldwide Holdings <HLT.N> and Plains GP Holdings <PAGP.N>
lifted deal proceeds up 21 percent from 2012 to $56.4 billion.
(Reporting by Soyoung Kim, Olivia Oran
and Greg Roumeliotis in New York; editing by Tim Dobbyn and Cynthia
Osterman)
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