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Blackstone near deal to buy Advarra from Genstar at $5bn valuation – report

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Private equity giant Blackstone is said to be nearing a deal to buy pharmaceuticals and regulatory consulting business Advarra from Genstar Capital at $5bn valuation.

A deal could be announced in the coming days, Bloomberg reported quoting sources.

Genstar was reported in February to be looking to exit Advarra at a $5bn price tag.

Advarra provides services to ensure clinical trial participants safeguarding, compliance and optimize research performances. It serves over 3,500 sponsors, CROs, institutions, academic medical centers and research consortia.

Genstar acquired a majority stake in Advarra from Linden Capital in 2019, in a deal believed to value the business at about $1.3bn.

The company’s main competitor, WCG, is also private equity owned, with Leonard Green and Partners buying into the Arsenal Capital-baccked business in 2019.

Genstar raced to an $11.7bn close for its tenth fund last year – a huge increase on the already weighty $5.5bn Fund IX it closed in 2019.

Recent deals from the firm include buying Arrowhead Engineered Products, a global provider of replacement parts for motorised vehicles and equipment, from The Riverside Company and Investcorp.

Blackstone closed its first life science yield fund on with $1.6bn of capital commitment in April, the largest first time fund of the nature.

The firm launched Blackstone Life Sciences four years ago. It forayed into the sector by securing a $2.6bn deal for life science investment firm Clarus in 2018.

It closed its inaugural life science fund Blackstone Life Sciences V in 2020 on its $4.6bn hard cap, making it the largest life sciences private fund at the time.

The firm also struck a $4.5bn final close for its oversubscribed Blackstone Growth fund last year – making it the largest first-time growth equity private fundraise in history.

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