York-based Pivotal Laboratories has been acquired by a US company, delivering an initial return of 2.2 times money for venture capital backer NVM.

York-based Pivotal Laboratories has been acquired by a US company, delivering an initial return of 2.2 times money for venture capital backer NVM.

The laboratory support business, which undertakes testing on human subjects for pharmaceutical and biotech companies, was bought by New York-based clinical testing company ACM.

NVM, which funded Pivotal’s management buy-out in 2005, generated an initial internal rate of return (IRR) of 27 per cent from the sale, ‘with further proceeds confirmed’.

Pivotal’s MD Jerry Boxall says, ‘We already have a good working relationship with ACM through our marketing alliance. We are looking forward to developing the joint offering and driving forwards the company’s global expansion.’

Advisers to the deal included law firm Eversheds while corporate finance work was undertaken in-house by finance director Jon Joyce.