Client case study
Instem is a leading supplier of software solutions to the early development healthcare market. Its solutions are used by organisations, mainly in the pharmaceutical R&D sector, for data collection, management and analysis.
Instem has offices in the United States, United Kingdom and China with additional locations in India and a full service distributor based in Japan. Its blue chip customer base consists of leading pharmaceutical, chemical and contract research organisations as well as academic, government and privately funded research institutions across a number of sites worldwide. These include seven of the top ten pharmaceutical and biotech companies such as GlaxoSmithKline and AstraZeneca.
Rickitt Mitchell was appointed to consider options for raising finance to develop the business both organically and via acquisitions. The shareholders also wanted to realise some of their value and to put a structure in place that could be used to incentivise senior employees. We were also asked to help identify appropriate global acquisition targets.
"This acquisition is another win for our market. Our clients will now have the ability to turn to one global supplier for their data management needs across broader segments, providing them with greater efficiencies."Phil Reason |CEO | Instem PLC
Rickitt Mitchell assessed and considered various options for raising funds and simultaneously realising some value for shareholders, including debt and private equity fundraisings. Our assessment of the business led us to believe that Instem would be a strong candidate for an Initial Public Offering ("IPO") on the public markets and that this route would best achieve Instem’s and its shareholders' goals.
Rickitt Mitchell shortlisted a number of NOMADs and Sponsors with relevant sector experience and then helped management select the most appropriate NOMAD and Sponsor for this process – something that is critical to a successful outcome.
The Company achieved an IPO during a period of turbulence in the public markets and was one of only a very few successful IPO’s of trading businesses on either the AIM or main market that year.
We helped maximise the value placed on Instem, achieving an initial listing with a market capitalisation of £21m. Part of our role in this process was to convey the value of the business to the NOMADs and make sure that the pricing of the IPO remained at the right level during the process.
The IPO route also raised significant funds to pursue a global M&A strategy. Since the IPO we have gone on to advise Instem on the acquisition of three companies.
BIOWISDOM, A provider of software solutions for extracting intelligence from R&D related healthcare data, for up to £1.5m
LOGOS HOLDINGS, A software provider to the global early development healthcare market, for up to £5m
PERCEPTIVE INSTRUMENTS, A leader in image analysis and data management solutions, for up to £1.3m
All acquisitions were structured and negotiated to include contingent earn-out components to provide downside protection.
£21m Market cap
3 subsequent acqusitions