Instem acquires Notocord in EUR 4.2m deal

Provider of IT solutions to the global early development healthcare market, Instem, announced on Monday that it has acquired Notocord.

The AIM-traded firm said the total consideration, to be satisfied in cash, will be up to €4.2m, net of any cash acquired adjusted for a normalised level of working capital.

It explained the Acquisition is expected to be immediately earnings enhancing.

The consideration comprises €2.0m on completion, and up to a further €2.2m payable on the achievement of certain targets, including the future financial performance of Notocord. Further information on the terms of the Acquisition is set out below.

Notocord, based in Paris and New Jersey, has 16 employees and provides software solutions for data acquisition and analysis and is a highly respected name in the life sciences software industry.

In its last financial year ended 31 December 2015, it reported sales of €2.25m and operating profits of €0.7m, with the Acquisition expected to be earnings enhancing in 2016.

As at 31 May, Notocord had pro forma net assets of €0.03m, with no debt.

The pro forma net assets are based on a normalised level of working capital and exclude cash distributed to the shareholders of Notocord prior to completion, Instem said.

“Our mission all along was to create technology that was easier and faster to use so our clients can do what they do best, every day,” said Notocord founder and CEO Philippe Zitoun.

“Since we were founded, we have relied on innovative and creative thinking to understand tomorrow's needs in the marketplace.”

Zitoun said becoming part of Instem allows Notocord to deliver “more value, more quickly and to more users everywhere”.

“The entire team here at Notocord is excited to be supported by a full complement of resources across Instem's eleven international offices.

“Instem shares in our commitment to excellence and is also well known for highly satisfied clients throughout all of the segments that they serve,” Zitoun explained.

Phil Reason, CEO of Instem, said Notocord has a “stellar reputation” and a “high quality” team.

“Having known Philippe and their solutions for many years, we are confident that we will be successful together and that our clients will be very encouraged by the combination of two complementary offerings.

“As experts in safety pharmacology, the Notocord team joins us just as this becomes a significant additional focus area for SEND, one of our largest growth opportunities over the next few years,” Reason commented.

He said there are also some disruptive innovations in the safety pharmacology market which could be highly beneficial for Instem, making the timing “just right” to bring Notocord into the group.

“We are in a strong position to increase the global reach and penetration of the existing Notocord products while helping the team to launch new and exciting solutions.”