IMS Health To Acquire Walsh International

IMS Health, a division of Cognizant Corp, has signed definitiveagreements to acquire Walsh International Inc and Pharmaceutical Marketing Services Inc, thereby strengthening the company's position in the health care information industry.

Under the terms of the agreements, Walsh shareholders will receive 0.3041 shares of Cognizant common stock per Walsh share, or a consideration of $167 million, while in a similar arrangement, PMSI shareholders will get 0.2800 shares, or a consolidation of $180 million.

Victoria Fash, IMS Health's president, said that the acquisitions are sound investments, as "both are projected to be earnings-neutral in 1998, becoming accretive in 1999." Walsh generated $54 million revenues in the fiscal year ended June 1997, while PMSI had information services income of $62 million.