Published on: March 1, 2021
Strengthening the position in Discovery
Instem has announced the (earnings enhancing) acquisition of UK-based Discovery software solutions provider The Edge Software Consultancy Ltd (“The Edge”) for a total consideration of up to £8.5m. The Edge provides technology and services aimed at improving the efficiency of drug discovery R&D, essentially bridging the gap between research & IT. A strong fit with Instem’s existing Study Management business in our view, the deal appears a well-considered and useful extension to the Instem platform. We increase forecasts following the announcement, with FY 22E revenue and adjusted EPS increased by 9% and 22% respectively.