What happened? Shares of PRA Health Sciences (NASDAQ: PRAH), a contract research organization (CRO), are jumping on Wednesday and were up by 18.2% as of 1:27 p.m. EST. There are two reasons investors are bidding up PRA Health Sciences' stock today. First, the company reported better-than-expected fourth-quarter 2020 revenue and earnings. Second, Icon Plc (NASDAQ: ICLR), a CRO headquartered in Ireland, announced a deal to acquire PRA Health Sciences. So what During the fourth quarter, PRA Health Sciences reported revenue of $873.5 million, representing a 9.1% year-over-year increase. The company's top line came in above the $829.02 million analysts were expecting. PRA Health Sciences' adjusted net income of $101.2 million -- or $1.55 on a per-share basis -- was also better than the adjusted net income of $98.7 million and adjusted earnings per share (EPS) of $1.54 it recorded during the fourth quarter of the fiscal year 2019. Image source: Getty Images. On average, analysts expected the company's adjusted EPS to be $1.47. Meanwhile, Icon's proposed acquisition of PRA Health Sciences is valued at about $12 billion, which represents a 30% premium over PRA Health Sciences' stock price as of the close of trading on Feb. 23. Per the terms of the agreement, each of PRA Health Sciences' shareholders will receive $80 in cash and 0.4125 shares of Icon for each share of PRA Health Sciences owned. Icon's shareholders will own about 66% of the merged entity. Now what While PRA Health Sciences' stock is getting a boost as a result of today's news, Icon's stock is going in the opposite direction, dropping by as much as 11.3% today. And that's despite the healthcare company also reporting revenue and earnings that topped the consensus analyst estimates. Investors are likely not thrilled that Icon is paying a hefty premium for its acquisition of PRA Health Sciences. 10 stocks we like better than ICONWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and ICON wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source