Patni Computers has made its fifth acquisition by buying out US-based life science information technology consulting company Taratec for $27.2 million in an all-cash deal.
The acquisition, funded through internal accruals, will see an upfront payment and a three-year contingent payment depending on the performance. This gives Patni an entry into the life sciences segment. Taratec provides integrated business, IT and regulatory compliance products and services, and has over 150 people on its rolls with centres in the US and Puerto Rico. Taratec, with a topline of $20 million, has over 75 clients in some of the leading companies in the life sciences industry such as Aventis, Glaxo Smithkline and Pfizer, among others.
According to industry statistics, IT spend by life science firms is expected to reach $22 billion by 2009 with IT services and software representing the largest growth areas. Typically, life sciences companies can spend over $1 billion and take over 7-10 years to launch a product with a heavy dependence on IT.
The life sciences market is going through a change with increasing pressure on growth and margins. Leading pharma companies are trying to use IT to drive research and development (R&D) and business objectives and performance.
Taratec also brings in long-term customer relationships which will be valuable for Patni in getting a headway into the segment.
The primary markets for Patni through Taratec will be the US and Europe, though Japan is a strong future potential.This is the second biggest acquisition for Patni after its buyout of Cymbal for $78 million in November 2004.
Patni for some time has been acquiring a few companies with a consulting capability, and in the first week of July 2007 had acquired a telecom consultancy firm called Logan-Orviss.
The acquisition, funded through internal accruals, will see an upfront payment and a three-year contingent payment depending on the performance. This gives Patni an entry into the life sciences segment. Taratec provides integrated business, IT and regulatory compliance products and services, and has over 150 people on its rolls with centres in the US and Puerto Rico. Taratec, with a topline of $20 million, has over 75 clients in some of the leading companies in the life sciences industry such as Aventis, Glaxo Smithkline and Pfizer, among others.
According to industry statistics, IT spend by life science firms is expected to reach $22 billion by 2009 with IT services and software representing the largest growth areas. Typically, life sciences companies can spend over $1 billion and take over 7-10 years to launch a product with a heavy dependence on IT.
The life sciences market is going through a change with increasing pressure on growth and margins. Leading pharma companies are trying to use IT to drive research and development (R&D) and business objectives and performance.
Taratec also brings in long-term customer relationships which will be valuable for Patni in getting a headway into the segment.
The primary markets for Patni through Taratec will be the US and Europe, though Japan is a strong future potential.This is the second biggest acquisition for Patni after its buyout of Cymbal for $78 million in November 2004.
Patni for some time has been acquiring a few companies with a consulting capability, and in the first week of July 2007 had acquired a telecom consultancy firm called Logan-Orviss.
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