LONDON, UK: Instem plc, a leading provider of IT solutions to the global life sciences market, announced the acquisition of life sciences software company PDS Pathology Data Systems Ltd for a total enterprise value of CHF 14.25m (c.£11.4m).
The consideration will be satisfied by a combination of cash and ordinary shares in the Company.
Headquartered in Switzerland with offices in the United States and Japan, PDS has been a direct competitor of Instem for over 25 years.
PDS provides software for non-clinical study management and software and outsourced services for regulatory submissions using SEND (the Standard for the Exchange of Non-clinical Data). Seven of the world’s top ten pharmaceutical companies have relied on PDS, as have leading contract research organisations, chemical companies, universities and regulatory agencies.
PDS has a highly experienced and respected team with deep product and market domain expertise in non-clinical study management and the complex and continually evolving area of SEND submissions.
In the year ended December 2020, PDS had unaudited, normalised profits before tax of CHF 0.75m (c. £0.6m) on sales of CHF 6.5m (c. £5.1m), of which CHF 2.3m (c. £1.8m) was recurring SaaS and software maintenance revenue.
As at 31 December 2020, PDS had net liabilities of CHF 1.5m (c. £1.2m), including loans from its shareholders of approximately CHF 3.0m (c. £2.4m). These loans will be settled in full out of the proceeds received by PDS shareholders.
Instem will fully integrate approximately 35 additional PDS staff into its operations and expects to retain all of the combined workforce. The Acquisition will immediately increase Instem’s operational capacity, providing an opportunity to combine teams operating in the significant United States, Swiss and Japanese markets.
The Acquisition will enable Instem to concentrate investment on a single line of SEND and preclinical study management products, removing unnecessary duplication in the market. The combination of technologies and highly experienced teams will enable the Company to enhance the development and delivery of existing and new solutions that provide higher value to its clients.
Phil Reason, CEO of Instem, commented: “We are delighted to have completed our third acquisition of 2021 which, along with the Company’s strong organic growth, ensures that Instem is positioned as the foremost authority and driving force in generating, analysing and leveraging data from discovery through late-stage clinical trials.
“We have known the team at PDS for many years and are well aware of their industry standing. We have spoken on several occasions about a potential combination and are delighted that they have agreed to join us at Instem, at a time when both of our businesses and the life sciences market are thriving. We look forward to integrating the business and benefiting from the scale and increased reach that will further cement our leading market position”.
Vicente Nogués, CEO at PDS, a life sciences software company, commented: “This was a natural next step in our quest to help clients do more and go further than ever before. Our mission, values and overall company cultures are aligned very well – which was the highest of priorities for PDS.
“As part of Instem, our clients will now have access to the most comprehensive range of solutions found in the market today backed by excellent customer service, while our staff will enjoy additional opportunities for professional growth. Together, we are looking forward to advancing the ever-important mission of helping clients to bring their life enhancing products to market faster”.
Instem PLC share price
796.00 GBX0.00 (0.00%)today
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