Venn Life Sciences Holdings Pl Completes Acquisition of French CRO
Venn Life Sciences (AIM: VENN), a growing Clinical Research Organisation (CRO) providing clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, announces the acquisition of Cardinal Systems SAS ("Cardinal"), a France based CRO specialising in Data Management and Randomisation systems.
The acquisition extends Venn's service offering into Data Management and Randomisation, a customer requirement that was previously outsourced, and so further strengthens the Company's position as a leading full-service European CRO.
Under the terms of the acquisition Venn has subscribed for €200,000 of new ordinary shares in Cardinal and has purchased existing shares in Cardinal for a consideration of €272,780. The total consideration will be paid in cash from existing funds and following this subscription and purchase of new shares Venn will own 79.8% of the enlarged share capital of Cardinal.
On 30 September 2014 Venn will subscribe cash for a further €200,000 of new Cardinal shares increasing its shareholding to 85.2%. Venn has a call option over the remaining 14.8% the consideration for which would be based on the financial performance of Cardinal for the year to 30 September 2015.
Founded in 1996 and based in Paris, Cardinal brings significant experience of Data Management and Randomisation into the Venn fold, increasing Venn's capacity to bid for larger international clinical trials with an in-house full-service offering. Cardinal is well known for its enhanced technological systems and adeptness at managing multiple sites and has an active global client base including large & mid-sized Pharmaceutical companies, Governmental organisations, Non-profit organisations and Biotechnology firms. The addition of these services as a core service offering further emphasises Venn's status as a full service pan-European CRO. In the year to 30th September 2013 Cardinal recorded a loss before tax of €444k. Since then Cardinal has undertaken a significant restructuring and accordingly this acquisition is expected to be earnings enhancing in its first full year.
Tony Richardson, CEO of Venn Life Sciences, said: "The combination of Cardinal's IT expertise with Venn's extensive clinical trial management experience enables us to offer our sponsors a more holistic approach to managing their trials. Our sponsors have highlighted to us in recent times the importance of having these services under the one roof and we moved quickly to find a suitable company that fits into the Venn organisation. This enhances our growth opportunities as a company as we can target a wider portfolio of studies and we have already encountered positive feedback from potential customers in anticipation of this kind of deal."
Cardinal CEO, Antoine Périer, commented: "We are excited to have joined one of Europe's fastest growing CROs and we believe that coming under the Venn umbrella sees us increase our ability to pitch for bigger business to a wider global audience."
The Cardinal team will continue to be based out of the Paris office and will work in tandem with each of the Venn offices across Europe.