Covington Associates Advises Tourtellotte Solutions in Sale to BioClinica
September 16, 2009 – Boston, MA – Covington Associates announced today it acted as financial advisor to Tourtellotte Solutions in its sale to BioClinica, Inc. (NASDAQ: BIOC). BioClinica, headquartered in Newton, PA, is a global provider of clinical trial services helping to support drug and product development efforts through all phases of the clinical trial process.
“When we looked at strategies to rapidly grow and expand the company to meet the demand for our products, joining the BioClinica team was the logical step,” said Ed Tourtellotte, President of Tourtellotte Solutions. “BioClinica has a strong global presence in the market, robust product offerings and great client relationships. Their experienced sales and operations infrastructure will enable the benefits of clinical trial supply optimization and the next generation of IXR to reach more new clients, faster. We look forward to being an integral part of BioClinica`s continued success.”
David Anderson, Director at Covington Associates, said, “This transaction provides Tourtellotte Solutions with the broader platform and deeper resources to accelerate the development and deployment of its clinical supply chain management software and IXR solution. BioClinica continues to identify key technologies that together represent one of the most complete offerings available in the e-clinical space today. This deal comes after a spate of deals by other leading e-clinical solutions providers and demonstrates continued consolidation in the sector.”
BioClinica is purchasing substantially all of the assets of Tourtellotte for $2.1 million in cash at closing plus additional payments based upon achieving certain milestones. If certain predetermined milestones are achieved an additional $3.2M in cash and 350,000 shares of BioClinica common stock can be earned.
Tourtellotte generated approximately $3.9 million in revenue in 2008. BioClinica estimates that Tourtellotte will generate approximately $5.0 million in revenue for the full year 2009 on a stand-alone basis. BioClinica currently estimates that for the remaining three and a half months of 2009, Tourtellotte will contribute approximately $1.2 million in revenue and contribute a small amount of operating income and be EPS neutral. The above unaudited financial information is based upon preliminary estimates, subject to the company`s further review.
About Tourtellotte Solutions
Tourtellotte Solutions is a software and services firm focused on providing cutting edge products, custom application development and consulting services. Tourtellotte Solutions uses its domain expertise, application solutions, deep technical knowledge, and a flexible consulting approach to deliver value to the pharmaceutical and high-technology industries.
To learn more about Tourtellotte Solutions, visit www.tourtellottesolutions.com.
About Covington Associates LLC
Covington Associates is a specialty investment banking firm founded in 1991 serving business service, consumer, industrial, healthcare, and technology companies throughout the country. Focused on mergers and acquisitions, debt and equity capital raising, debt and equity restructuring, and strategic advisory assignments for middle market companies, Covington Associates has completed transactions ranging in value from $10 million to nearly $2 billion for both private and publicly traded companies.