(RTTNews) -  Healthcare market data provider IMS Health Inc. (RX: News ) said Thursday that it has agreed to be acquired by investment funds managed by TPG Capital and the CPP Investment Board in a transaction worth $5.2 billion, including the assumption of debt. Following the news, the company's shares gained more than 23% in the intra-day trading.

Under the deal, which was approved by the IMS board, IMS shareholders will receive $22.00 cash per IMS share, which represents a premium of about 50% over the closing share price on October 16, the last trading day prior to public speculation that IMS was considering its strategic alternatives.

David Carlucci, IMS Chairman and CEO, said, "This transaction enables our shareholders to realize substantial value from their investment in IMS with an immediate cash premium, while at the same time strengthening our position to capture long-term growth opportunities."

The transaction has fully committed financing, consisting of a combination of equity to be invested by TPG and CPPIB and debt financing to be provided by certain affiliates of Goldman, Sachs & Co.

The deal is expected to occur by the end of the first quarter of 2010, subject to the approval of IMS shareholders, regulatory approvals and customary closing conditions.

IMS has been in the news for weeks for speculations regarding the company's proposed sale option. Media sources reported that the company was in advanced talks with private-equity firms to sell itself. Private-equity funds TPG, Silver Lake and BC Partners were reportedly among the companies to submit offers.
However, no pharmaceutical companies were said to be part of the talks, as many drug firms rely on IMS for independent analysis and advice. If a drug firm were to purchase the company, its rivals would likely quit doing business with the company.

Confirming the speculations, the company said last month that it is exploring a variety of strategic alternatives. The company also said its board has formed a committee, which has retained Foros Securities LLC as its financial advisor. The company has retained Deutsche Bank Securities Inc. as its financial advisor.

Norwalk, Connecticut-based IMS buys prescription data from pharmacies and sells it to drug makers who use the information to measure the effectiveness of their marketing to doctors. The company, originally called Intercontinental Marketing Services when it was founded in 1954, also provides consulting in areas such as sales-force productivity.

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