PharmaNet Going Private (PDGI)

This may be far from a super-merger and may be far from a return or thrust from private equity.  But it is a deal in the drug and research sector.  PharmaNet Development Group, Inc. (NASDAQ: PDGI) has agreed to be acquired by JLL Partners, Inc.

JLL will commence a tender offer topurchase all of the outstanding shares of PharmaNet fot$5.00per share in cash.  This is a huge premium when youconsider that the stock closed at $1.34 yesterday.  But you also have tokeep in mind that the 52-week trading range of $0.67 to $42.77.

This values the company at roughly $100 million and will be financed bya $250 million equity commitment from JLL.  This includes the necessaryfunds to retire the $144 million principal amount of outstandingconvertible notes.

The transaction is subject to the valid tender of a majority ofPharmaNet common stock, regulatory approvals and other customaryconditions

Assuming all goes as planned, the tender offer is expected to close bythe end of the first quarter.  That implies less than 60 days fromnow.  Shares were halted for trading and are set to resume at 9:00 AMEST.

Jon C. Ogg
February 3, 2009