IMS Ims Health Holdings, Inc.

Healthcare software and data company IMS Health Holdings Inc. and drug-industry outsourcer Quintiles Transnational Holdings Inc. on Tuesday said they agreed to merge in an all-stock deal worth about $8.75 billion.

The combined company would be called Quintiles IMS Holdings.

In the deal, IMS Health shareholders will receive 0.384 shares of Quintiles common stock for each share of IMS Health. IMS Health shareholders—whose new stock is valued at about a 1.2% discount to Monday's close—will hold about 51.4% of the shares of the combined company. Quintiles shareholders will hold the remaining 48.6%.

IMS Health and Quintiles see the tie-up improving drug trials, as well as creating "a leading portfolio of anonymous patient records, technology-enabled data collection and observational research experts to address critical healthcare issues of cost, value and patient outcomes."

"This combination addresses life-science companies' most pressing needs: to transform the clinical development of innovative medicines, demonstrate the value of these medicines in the real world, and drive commercial success," said Quintiles Chief Executive Tom Pike.

The companies estimate cost savings of about $100 million by the third year after close—which is anticipated in the second half of 2016—and the deal to be accretive to adjusted earnings in 2017.

In 2015, the companies' combined reported revenue was $7.2 billion.

Shares of IMS Health and Quintiles, inactive premarket, have added 12% and 18% over the past three months, respectively.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

May 03, 2016 07:35 ET (11:35 GMT)

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