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IQVIA Holdings Inc.(IQV - Free Report) recently announced that it has completed the acquisition of the remaining 40% interest in Q2 Solutions from Quest Diagnostics (DGX - Free Report) for $760 million in cash. As a result, Q2 Solutions is now fully owned by IQVIA.
In 2015, Q2 Solutions was established as a joint venture between IQVIA and Quest Diagnostics wherein IQVIA had a 60% stake and Quest Diagnostics owned the remaining 40%. Q2 Solutions is one of the leading global clinical laboratory services organizations, offering comprehensive testing, project management, supply chain, biorepository and biospecimen, and consent tracking of solutions for clinical trials.
Per a multi-year agreement, Quest Diagnostics will continue to be the preferred laboratory provider for Q2 Solutions clients. Multiple lab-testing capabilities should boost Q2 Solutions’ core offerings, extending its industry-leading suite of services.
Over the past six months, shares of IQVIA have gained 24.3% compared with 17.6% growth of the industry it belongs and 20.6% increase of the Zacks S&P 500 composite.
How Will IQVIA Benefit?
The deal is expected to boost IQVIA’s 2021 adjusted earnings per share by almost 12 cents and 2022 EPS by 18 cents. Notably, the company has raised its 2021 adjusted EPS guidance to the range of $7.89 to $8.20 compared with the prior guidance of $7.77-$8.08.
Since IQVIA previously owned the majority share of Q2 Solutions, it has consolidated 100% of Q2 Solutions’ revenues and adjusted EBITDA into its reported financial statements. To this end, the latest deal will not impact IQVIA’s revenue and adjusted EBITDA.
We believe that the acquisition will also help IQVIA strengthen its Research & Development Solutions segment, which offers project management and clinical monitoring, clinical trial support services, clinical laboratory services, strategic planning and design, and virtual trials. Fourth-quarter 2020 revenues of the segment increased 14.5% on a reported basis and 13.2% on a constant-currency basis from the year-ago level, to $1.68 billion.
The long-term expected earnings per share (three to five years) growth rate for Omnicom, Charles River Associates and Gartner is 9.3%, 13% and 13.5%, respectively.
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Image: Bigstock
IQVIA (IQV) Buys Remaining Q2 Solutions Stake, Ups EPS View
IQVIA Holdings Inc.(IQV - Free Report) recently announced that it has completed the acquisition of the remaining 40% interest in Q2 Solutions from Quest Diagnostics (DGX - Free Report) for $760 million in cash. As a result, Q2 Solutions is now fully owned by IQVIA.
In 2015, Q2 Solutions was established as a joint venture between IQVIA and Quest Diagnostics wherein IQVIA had a 60% stake and Quest Diagnostics owned the remaining 40%. Q2 Solutions is one of the leading global clinical laboratory services organizations, offering comprehensive testing, project management, supply chain, biorepository and biospecimen, and consent tracking of solutions for clinical trials.
Per a multi-year agreement, Quest Diagnostics will continue to be the preferred laboratory provider for Q2 Solutions clients. Multiple lab-testing capabilities should boost Q2 Solutions’ core offerings, extending its industry-leading suite of services.
Over the past six months, shares of IQVIA have gained 24.3% compared with 17.6% growth of the industry it belongs and 20.6% increase of the Zacks S&P 500 composite.
How Will IQVIA Benefit?
The deal is expected to boost IQVIA’s 2021 adjusted earnings per share by almost 12 cents and 2022 EPS by 18 cents. Notably, the company has raised its 2021 adjusted EPS guidance to the range of $7.89 to $8.20 compared with the prior guidance of $7.77-$8.08.
Since IQVIA previously owned the majority share of Q2 Solutions, it has consolidated 100% of Q2 Solutions’ revenues and adjusted EBITDA into its reported financial statements. To this end, the latest deal will not impact IQVIA’s revenue and adjusted EBITDA.
We believe that the acquisition will also help IQVIA strengthen its Research & Development Solutions segment, which offers project management and clinical monitoring, clinical trial support services, clinical laboratory services, strategic planning and design, and virtual trials. Fourth-quarter 2020 revenues of the segment increased 14.5% on a reported basis and 13.2% on a constant-currency basis from the year-ago level, to $1.68 billion.
Zacks Rank and Stocks to Consider
IQVIA Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Servicessector are Omnicom (OMC - Free Report) , Charles River Associates (CRAI - Free Report) and Gartner (IT - Free Report) , each carrying a Zacks Rank #2 (Buy).
The long-term expected earnings per share (three to five years) growth rate for Omnicom, Charles River Associates and Gartner is 9.3%, 13% and 13.5%, respectively.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>