Averion International (Southborough, Massachusetts)
The purchase price consists of an up-front cash payment of $455,000 plus deferred payments of $250,000 and unsecured promissory notes worth $1.57 million, subject to IT&E’s future financial performance. The deferred payments are due to be made in three equal tranches at quarterly intervals starting on January 31st 2008. Interest on the term notes will be payable up to October 3rd 2010.
The staffing services division is “a non-core asset that has been a financial burden on our operations”, said CEO Dr Philip Lavin, stating that Averion intends to focus on its core CRO business. The company recorded restructuring charges of $200,000 to improve efficiencies and reduce costs in the division in the second quarter of 2007, while the unit’s net service revenues fell by $3.2 million in the first half. Averion reported a first-half loss of $2.6 million.
The division provides staffing and regulatory compliance and validation services to life science companies, and includes all the assets of Averion’s subsidiary, IT&E California (Solana Beach). It became part of the company after Averion was acquired by IT&E International in August 2006, when the whole company was renamed Averion International.
