Instem PLC’s (LON:INS) acquisition of The Edge, its first deal post fundraising in July, is a highly complementary addition says house broker N+1 Singer.
The company is paying up to £8.5mln to acquire The Edge Software Consultancy, which supplies study management and data collection solutions into the drug discovery market.
There are a number of opportunities to drive revenue by leveraging Instem’s global infrastructure and sales and marketing capabilities said the broker, which has raised its 2021 and 2022 forecasts by 8% and 15% respectively.
“Instem is one of our Best Ideas for 2021 and we see the acquisition as adding to an already positive organic growth outlook.
“The deal is a highly complementary bolt-on, further extending Instem’s offering into a closely adjacent market and offering substantial potential revenue synergies over time.
“It is earnings and margin accretive and fits perfectly with Instem’s ambition to consolidate the life sciences IT market and to become a strategic partner of choice.”