WALTHAM, Mass.—In a pair of deals designed to boost itsinformatics and software offerings, PerkinElmer Inc. recently signed adefinitive agreement to acquire software and database company CambridgeSoftCorp. and completed its purchase of software firm ArtusLabs Inc.
Together, the deals are valuedat $220 million. Under the agreements, PerkinElmer could pay up to $15 millionmore for the companies based on contingencies. Combined, CambridgeSoft andArtusLabs are expected to bring in revenue of approximately $65 million for thefiscal year 2011.
According to PerkinElmer, the acquisitions will enhance itsfocus on knowledge management in laboratory settings by expanding itsinformatics and software offerings, enabling customers to rapidly access andshare enterprise-wide data for faster, more informed scientific decisions.
"The ability to integrate scientific tools and informaticsis becoming increasingly critical for our customers as they look to driveproductivity and speed to market," Robert Friel, PerkinElmer's CEO andchairman, said in a statement. "CambridgeSoft brings strong customer relationshipsand excellent organizational capability, along with market-leading products inboth desktop and enterprise-wide software. ArtusLabs provides us withinnovative technology, enabling enhanced access to scientific knowledge, and ishighly complementary to CambridgeSoft's informatics solutions."
The CambridgeSoft acquisition is expected to close in thesecond quarter, subject to customary closing conditions. Based in Cambridge,Mass., CambridgeSoft is a provider of scientific databases and other IT solutionsto the pharmaceutical and chemical markets.
According to Dusty Tenney, president of Analytical Sciencesand Laboratory Services at PerkinElmer, CambridgeSoft proved to be anattractive acquisition because it is one of the largest informatics players inits space, bringing with it strong customer relationships and excellentorganizational capability, and an advanced technology platform that is bothattractive to desktop and enterprise customers and extensible and scalableenough to extend into other growth applications.
"Its size means it is also one of the few companies in thespace that has the geographic footprint to support the global deploymentssought by multinational corporations," he says. "There is a tremendousopportunity to combine CambridgeSoft's informatics solutions with our OneSourceasset management solutions, making us uniquely qualified to enable highlyefficient laboratory environments and increased scientific productivity."
PerkinElmer says CambridgeSoft will benefit from itsfunctional support infrastructure and presence in core markets such aspetrochemicals and safety and security, further extending its customer reach.Work performed by CambridgeSoft's Professional Services teams is complementaryto the asset management, equipment maintenance and equipment utilizationservices provided by PerkinElmer's OneSource Laboratory Services.
"This allows PerkinElmer to enhance the breadth and qualityof services offered to the same customer, building stronger, longer andultimately more profitable enterprise relationships," Tenney points out.
Based in the Research Triangle Park area of North Carolina,ArtusLabs offers the Ensemble scientific knowledge platform to accelerateresearch and development in the pharmaceutical, chemical, petrochemical andrelated industries. Ensemble integrates disparate data from customers' legacyelectronic laboratory notebooks (ELN) and informatics systems and databases,maximizing the value of an organization's scientific intellectual capital.
"Its enterprise solutions are web-based for ease ofdeployment and low cost of ownership," Tenney says. "The web-based interfacemakes remote hosting easier, again lowering costs, and positions the companyperfectly to capitalize on the trend toward cloud computing."
ArtusLabs' products will plug straight into theCambridgeSoft sales and service support network, and will be sold to existingCambridgeSoft customers as well as new PerkinElmer customers.
"The ArtusLabs Ensemble engine will facilitate rapid knowledgesearch and retrieval from CambridgeSoft enterprise systems as well as fromintegrated and non-integrated systems from other vendors deployed at the samecustomer locations," Tenney says. "By combining the processing power of thesetwo companies, PerkinElmer has created a new space previously unoccupied in themarket."
For the time being, CambridgeSoft will remain based at itsexisting facilities. The ArtusLabs team will remain in place, but its businesswill be managed out of Cambridge, Mass. ArtusLabs CEO Robin Smith will staywith PerkinElmer and keep an office in Morrisville, N.C.
"At this time, no significant changes will be made topersonnel in either organization, as the expertise that these teams bring toPerkinElmer is just as valuable as the products themselves," Tenney says.
Tenney concludes that today's marketplace requires that allorganizations maximize the value of their resources with little room for error.
"To that end, operational effectiveness is the key tomeeting this challenge, and the acquisitions of ArtusLabs and CambridgeSoftspeaks directly to this need," he says. "The true measure of these acquisitionswill be indicated by how much we can improve our customers' ability to besuccessful in meeting their goals."