TAMPA, Fla., Mar 19, 2012 (GlobeNewswire via COMTEX) — Kforce Inc., a provider of professional staffing services and solutions, entered into a Stock Purchase Agreement (the “Agreement”) with inVentiv Health, Inc. (“inVentiv”) dated March 17, 2012 to sell all of the issued and outstanding shares of capital stock of Kforce Clinical Research, Inc. (“KCR”) for an aggregate purchase price of $50 million in cash. Kforce expects the transaction to close at the end of March, subject to customary closing conditions.
David Dunkel, Chairman and Chief Executive Officer of Kforce, said, “As a result of an extensive review of our business and the changing landscape in the pharmaceutical industry, we have decided to sell our Clinical Research business. Selling this division is a logical step for us as we continue to narrow our focus, streamline our business mix and concentrate our resources on our core service offerings. We are excited for our KCR team as they will now be part of an organization with a global presence and additional functional capabilities. We believe inVentiv will offer our KCR associates significant opportunities for professional growth.”
Joe Liberatore, Chief Financial Officer, commented, “The divestiture of KCR will reduce the operating complexities of Kforce. Continuing strong demand in our Tech and FA businesses should allow us to replace the lost revenue from KCR over the next twelve months. SG&A expenses will increase in the first quarter related to the transaction and a gain on the sale will be recorded. Net cash proceeds from the transaction will be used to reduce outstanding debt, repurchase our common stock, invest in our infrastructure and/or make strategic acquisitions. Further information will be provided regarding the sale and our future outlook upon consummation of the sale.”
Robert W. Baird and Company is acting as advisor to Kforce Inc. on this transaction.
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By Tim Spagnola
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