Technology business makes £22m American acquisition
Life sciences IT provider Instem has bought an American clinical trial technology business for $31m (£22m).
d-Wise Technologies is based in North Carolina and has its UK headquarters in Manchester. It specialises in technology consulting and has a Software-as-a-Service (SaaS) solution which enables clients to anonymise their clinical trial data.
Phil Reason, chief executive of Instem, saidd: “More than a growth-based acquisition, this can truly help us transform the industry landscape.
“Our combined capabilities will help us meet the demand by our clients to create a more connected ecosystem across the life sciences in the global effort to bring life enhancing products to market faster.”
Instem, an AIM-listed business based in Stone, Staffordshire, provides IT solutions to improve the productivity of health companies’ processes in the discovery and development of new drugs, therapies and products.
Reason added: “Behind all of the technology is a highly talented, experienced and motivated d-wise team that shares our mission and values. They are widely trusted industry thought leaders and practitioners, committed to delivering an exceptional client experience.”
The deal, which is expected to complete next week, will see $13m cash and $7m in shares paid on completion. There will then be $8m paid in cash and shares in two tranches, and a further $3m earn-out based on d-Wise’s 2021 performance.
Instem’s share price rose 5% in early trading, pushing it to an all-time high. The group’s shares have enjoyed two years of strong growth, from 230p at the start of 2019 to above 600p today.