Testing for hire: INC Research files for a $150 million IPO

INC Research Holdings, a global contract research organization LBO'd by Avista and the Ontario Teachers' Pension Plan, filed on Monday with the SEC to raise up to $150 million in an initial public offering.

Avista and the OTPP acquired INC Research from Crosspoint Venture Partners and Adams Street Partners in 2010 for about $600 million.

Close peer PRA Health Sciences, a contract research organization LBO'd by KKR, filed for a $375 million IPO in early September. The world's largest CRO, Quintiles Transnational (Q; backed by TPG and Bain), has gained 40% since its $950 million IPO in May 2013.

During the six months ended June 30, 2014, net service revenue increased 26% to $388 million. Adjusted EBITDA rose 70% to $73 million. At quarter-end, INC Research had a backlog worth $1.5 billion, up 20% from $1.2 billion at the end of the 2Q13. As of June 30, the company had $589 million of debt and capital leases (4.4x LTM adjusted EBITDA).

The Raleigh, NC-based company, which was founded in 2010 and booked $732 million in sales for the 12 months ended June 30, 2014, plans to list on the NASDAQ under the symbol INCR. INC Research Holdings initially filed confidentially on July 7, 2014. Goldman Sachs and Credit Suisse are the joint bookrunners on the deal. No pricing terms were disclosed.