22nd Nov 2013 07:49
LONDON (Alliance News) - Instem PLC Friday said it will enter the in vitro research and development market by buying Perceptive Instruments Ltd for up to GBP1.3 million in cash, as it also said it's on track to meet current market expectations for its full-year results.
The healthcare IT applications company said it will pay an initial GBP1 million for Perceptive, and then a GBP0.3 million earn out contingent on the performance of the business in the first year after completion. It said it expects the deal to be earnings enhancing in the first year of full ownership.
"This acquisition represents further progress towards Instem's stated strategy of consolidating the fragmented life sciences IT marketplace, as it continues to deliver compelling solutions for data collection, management and analysis across the R&D continuum," the company said in a statement.
"The incorporation of further capabilities broadens Instem's repertoire, increases the strategic importance of Instem to its clients, and complements the group's existing solutions," it added.
Perceptive made revenue of GBP0.8 million in the 12 months to June 30, of which GBP0.3 million was recurring. Earnings before interest, tax, depreciation and amortisation were GBP0.36 million. Gross assets were GBP0.1 million at the end of June.
In a trading update, the company said it previous acquisition of Logos Technologies and its re-brand to Instem Clinical has been successfully completed and is performing ahead of expectations. It said it is seeing signs of improved confidence among its customers, but is still seeing some deferral of perpetual licenses. Still, it is on course to meet current expectations for its 2013 results.
"As usual, the outcome for 2013 will rely on the placing of certain anticipated contracts prior to the end of the year and the Group will provide a full pre-close update in January," it said.
By Steve McGrath; [email protected]; @SteveMcGrath1
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