Accelrys, a developer of scientific business intelligence software and solutions for the life sciences and Symyx Technologies, have signed a merger agreement to establish a new business in scientific informatics software.
The merger, structured as a tax-free, all-stock merger of equals, was approved by both companies’ boards of directors. On a combined basis, Accelrys and Sym have a pre-announcement market capitalisation of approximately $335m, cash reserves of approximately $150m (net of transaction costs), and no debt.
After a period of initial integration, full year net cost synergy savings are expected to be in the range of $10 – $15m. Additionally, the transaction is expected to be materially accretive to Non GAAP Earnings per Share.
The companies said that the merger is expected to be completed by the end of June 2010, subject to customary closing conditions, shareholder and regulatory approvals.
Reportedly, Max Carne, CEO of Accelrys, is expected to serve as CEO of the combined company. Is Gold-washer, CEO of Sym Technologies, will serve a transitional role in the combined San Diego, California-based company.
Mr Carne said: Scientific R&D organisations are challenged by the need to increase productivity and performance while grappling with budget pressures, restructuring, changes in scientific processes, and globally dispersed operations.
“These forces are creating profound changes in the processes of scientific discovery and the way R&D teams interact. New software solutions are urgently required to address these fundamental changes, and the merger of Accelrys and Sym creates a new, leading-force in the industry to address this situation.
Mr Gold-washer said: The merger of Accelrys and Sym creates a differentiated company that is uniquely qualified to advance the state of the scientific informants software industry. No other company combines our deep domain knowledge in chemistry, biology and materials science, enterprise software capabilities (in scientific data management, decision support and analytics), professional expert services, and a broad choice of partners.
“This powerful and synergistic combination with Accelrys allows us to meet the changing needs of our customers by delivering more agile, flexible and open scientific R&D environments through adaptive end-to-end workflow solutions.