IQVIA Holdings, Inc.’s (NYSE:IQV) attempt to acquire DeepIntent, a healthcare advertising firm, was reportedly thwarted as a U.S. court upheld a Federal Trade Commission (FTC) order, citing concerns that the merger could potentially harm competition.
The FTC expressed concern that the merger would adversely impact competition, resulting in heightened consumer prices and detrimentally affecting patients, Reuters reported.
In 2022, DeepIntent, a healthcare advertising firm owned by Propel Media, a digital advertising company, forged an agreement with IQVIA to facilitate smooth communication between patients and healthcare providers.
Earlier this year, the FTC took action to intervene and block the proposed merger between IQVIA and DeepIntent, aiming to prevent a rise in concentration within healthcare programmatic advertising.
In an open letter, DeepIntent’s chief executive officer affirmed that the company would abandon the deal and continue to operate as an independent entity if the regulator successfully blocked the merger. The financial terms of the deal remain undisclosed.
In the ruling, Ramos stated, “The FTC has shown that there is a reasonable probability that the proposed acquisition will substantially impair competition in the relevant market and that the equities weigh in favor of injunctive relief.”
IQVIA, in an emailed statement to Reuters, expressed disappointment with the court’s decision and mentioned that it was reviewing the decision and evaluating its options.
“We maintain that the FTC’s arguments in this case are inconsistent with the reality of the marketplace and unsupported by the law,” IQVIA told Reuters.
Price Action: IQV shares closed lower by 0.58% to $231.38 on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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