Symyx
Secures a Leading Position in R&D Informatics for
Life Sciences and Chemicals Industries
Symyx
Technologies, Inc. will acquire certain content and software
products of MDL Information Systems for $123 million in
cash (subject to a working capital adjustment) from Elsevier
Inc.
Following
the closing of the acquisition, Symyx expects to work
closely with Elsevier, the world''s leading publisher of
scientific, technical and medical information, in key
areas as part of a continuing strategic relationship to
support existing and new customers.
Following
the sale to Symyx of the infrastructure-related software
applications and databases of MDL, the content assets
of MDL retained by Elsevier - including CrossFire Beilstein,
the Patent Chemistry Database, Gmelin and PharmaPendium
- will be integrated within Elsevier''s Science & Technology
operations. Elsevier sees considerable opportunities in
the pharma biotech sector and will capitalize on these
through a content-led approach, providing for researchers
essential content linked to new R&D and productivity
tools.
Through
this acquisition, Symyx will become a leader in R&D
informatics with:
- Expanded
portfolio of complementary, integrated desktop and enterprise
R&D informatics offerings, including software, content,
systems and services essential to critical R&D activities
in the life sciences, chemicals and energy industries
- Expanded
market presence consisting of long-standing relationships
with over 1,000 customers and approximately 50,000 users
- Expanded,
global sales, marketing, distribution and customer support
infrastructure
- Deep
technical expertise to advance MDL''s industry-leading
informatics, database and workflow solutions to meet
customer needs
The
combined Symyx and MDL offerings would create the most
complete set of solutions available to enhance the efficiency
and productivity of R&D in the technology sector.
Santa
Clara-based Symyx provides electronic lab notebook (ELN),
automation and scientific decision-support software, automated
lab systems (workflows) and collaborative research services
to improve R&D productivity.
MDL,
based in San Ramon, California, provides technical R&D
software solutions to more than 1,000 life sciences companies.
MDL''s integrated informatics and content solutions for
discovery chemistry and biology include its ISIS and Isentris
platforms, and such industry standards as MDL Draw, MDL
Direct, Available Chemicals Directory (ACD) and DiscoveryGate.
With
this solution set, Symyx will be able to accelerate its
customers'' move toward paperless labs by integrating content,
collaborative desktops, automation and information management
for users, workgroups and the enterprise.
Isy
Goldwasser, Symyx''s Chief Executive Officer, said, "MDL
is an ideal strategic complement to our existing businesses,
as our market leadership in Tools and Research Services
will now be joined by expanded offerings in a substantially
strengthened Symyx Software business. These complementary
offerings address a growing market trend, as R&D methods
across all industries are undergoing dramatic change.
"Scientists
are increasingly recognizing the essential role that informatics,
database and workflow solutions play in more effectively
managing research programs and driving higher productivity.
The acquisition of MDL will position Symyx as a global
leader in providing these solutions, and we believe our
value proposition to customers will be stronger as a result.
"The
addition of MDL is also consistent with our ongoing efforts
to drive enhanced shareholder value. On a pro forma basis
in 2008, we expect Symyx and MDL combined software and
database operations to reach approximately $100 million
in revenues, much of it recurring, and for this transaction
to be accretive.
"More
broadly, this transaction underscores our commitment to
invest in those parts of the business which we believe
will help us to build predictable, recurring revenue streams
over time. With ongoing investments in sales and marketing
and reinvigorated leadership, Symyx is well-positioned
to maximise MDL''s value to our customers and its strategic
value to our Company."
The
transaction is expected to close during the fourth quarter
of 2007 and is subject to customary closing conditions
and documentation, including clearance under applicable
antitrust laws.
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