Instem PLC (LON:INS) acquired US-based clinical trial technology & consulting leader D-Wise Technologies for up to US$31mln in a major step-up of its acquisition plans.

The AIM-listed group said it has known d-Wise for a decade and said the acquisition should be earnings enhancing in 2021 while also expanding the product offering for large pharma groups.

 “D-Wise is well known for its drive to transform the life sciences through open and flexible access to data,” said Phil Reason, Instem’s chief executive.

“It acts as a strategic advisor to many of Instem’s existing clients and is one of the leading IT solutions, he said, adding that using its data analysis expertise D-Wise has accelerated clinical trial analysis and regulatory submissions for 19 of the top 20 global pharma companies, Instem added.

” Access to a broad array of data is key to aiding and speeding up drug research and development. We believe that the enlarged Group is now even closer to becoming a one-stop-shop for life science companies looking for a long-term relationship as we assist them across the drug discovery and development landscape.”

The US group made an underlying profit before tax of US$3.1m and adjusted EBITDA of US$3.6m on sales of US $24.1m in the year to end-December 202.

 Approximately 30% of revenue was recurring SaaS, hosting services and software support and maintenance.

“The combined strength of Instem & d-Wise positions the enlarged Group as the foremost authority and driving force in generating, analysing and leveraging data from Discovery through late-stage Clinical Trials,” Reason added.

The total consideration of up to US$31m comprises $20m on completion, US$8m of deferred consideration and up to a further US$3m of performance-related payments.

Last month, Instem paid £8.5mln to acquire software group The Edge as strategically it sets itself up as a consolidator in the life sciences big data segment.

The Edge’s expertise is to make sure data from experiments is efficiently captured, stored and shared between scientists and technicians helping to reduce the time required to market a drug.

Shares in Instem rose 5% to 605p.

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