Genstar Capital enters definitive agreement to acquire ERT

eResearchTechnology, Inc. (ERT), (Nasdaq: ERT), a global technology-driven provider of health outcomes research services to biopharmaceutical sponsors and contract research organizations (CROs), today announced that it has entered into a definitive agreement to be acquired by affiliates of Genstar Capital LLC, a leading middle market private equity firm for $8.00 per share in cash in a transaction valued at approximately $400 million.

The proposed transaction has been approved unanimously by the ERT Board of Directors, following a recommendation by a Special Committee of independent directors, and recommends that ERT shareholders approve the transaction.  The $8.00 per share purchase price represents a premium of approximately 38% over ERT's average closing share price for the 90 trading days ending on April 9, 2012 and 42% over the 52-week average.

Elam M. Hitchner, III, Chairman of the Special Committee, announced: "After completing a sale process conducted by J.P. Morgan, and careful and thorough analysis, together with our independent advisors, the Special Committee and our Board endorsed this transaction as being in the best interest of the Company and our stockholders. We are pleased that this transaction appropriately recognizes the value of ERT as one of the leading vendors to the pharmaceutical industry, while providing our stockholders with an immediate cash realization for their investment in ERT." 

Dr. Jeffrey Litwin, CEO of ERT, added, "We are pleased to announce this transaction with Genstar, whose experienced team of healthcare executives can provide strategic oversight, as well as acquisition capital,  to expand the company's service offering and market opportunities. They will help position ERT to better serve our clinical research clients by continuing to fund the innovative devices and services that have made us the premier provider of health outcomes research services."

Robert Weltman, Managing Director of Genstar, said, "ERT is an attractive opportunity that fits with Genstar's outsourcing thesis within the Life Sciences & Pharmaceutical Services sector. We are excited about helping the company evolve its offering and better serve its customers."

John Park, Partner at Blum Capital, which holds approximately 9% of the outstanding shares of ERT, voiced his support, stating, "We believe this transaction represents a fair price, and Blum Capital supports the transaction."

Pending stockholder approval and satisfaction of normal regulatory and closing conditions, the transaction is expected to be completed during the third quarter.  The Company's stockholders will be given notice of the sale and certain information about the transaction in a Proxy Statement that will be sent to stockholders. Following completion of the transaction, ERT will become a privately held company and its stock will no longer trade on Nasdaq.