15th Nov 2019 13:25
(Alliance News) - Instem PLC, a provider of IT solutions to the life sciences market, on Friday said that it has acquired US-based Leadscope Inc for up to USD4.6 million in cash and stock.
The company said the acquisition will be earnings enhancing from 2020 and will extend Instem's Informatics business, adding a regulatory-backed business and opening up cross selling opportunities.
Leadscope, based in Columbus, Ohio, provides in-silico safety assessment software used to enhance and accelerate life sciences research and development.
The acquisition consideration comprises USD3.4 million on completion and USD750,000 in deferred consideration and up to a further USD500,000 payment dependent upon the future financial performance of Leadscope.
Instem will fund the initial consideration by USD2.3 million in cash and USD1.1 million in new shares, equating to 231,966 shares. The cash part is being funded from existing resources.
Instem Chief Executive Phil Reason said: "Leadscope aligns perfectly with our strategy of expanding organically and acquisitively into adjacent market areas, particularly those having strong regulatory drivers for technology adoption."
Instem shares were up 1.6% at 375.00 pence each in London on Friday afternoon.
By Tapan Panchal; [email protected]
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