CambridgeSoft plans private placement, float on AIM
CambridgeSoft Corporation, a global supplier of discovery, analysis and collaboration software and services to research scientists, said it will seek admission to the London Stock Exchange's Alternative Investment Market.
The float will be via a placing of shares to primarily institutional investors in the UK and US. There will be no offer made to the public. The company did not disclose the value of the placement.
CambridgeSoft's headquarters are in Cambridge, MA, while its European operations are based in Cambridge, UK, in the heart of Silicon Fen. Its integrated suite of desktop software, enterprise informatics and knowledge management products are designed to improve the productivity of scientists and researchers in the discovery, development and commercialisation of chemical and biological compounds.
CEO Michael G. Tomasic said: “My colleagues and I are pleased to be bringing CambridgeSoft to AIM. The planned placing is an important next step in our development and will allow us to accelerate growth and strengthen our position within our sector.”
He said the company had “built a leading position in the scientific research market. Research is fundamental to all global pharmaceutical companies and our solutions are integral to these companies leveraging the intellectual property which they are developing, capturing and protecting on a daily basis.
“Our product development strategy is driven by our customers: this ensures the continual evolution and optimisation of our product suite. This strategy is underwritten by our outsourcing model, which allows us to continue to invest in maintaining the high level of quality in our products and services in a way that is cost effective for our customers.
CambridgeSoft estimates the addressable market for its solutions includes annual worldwide spending for desktop software of more than $50 million, for chemical and biological informatics of more than $500 million and for knowledge management solutions of more than $100 million, as well as significant and growing expenditures for related professional services.
In more than 20 years of operations, the Company has developed strong relationships with numerous top-tier global pharmaceutical, chemical and biotechnology companies, as well as other research organisations.
Since the beginning of 2004, the Company has made sales to all of the top 30 largest global pharmaceutical companies.
Mr Tomasic said The company had significant revenues and strong positive cash flow, and sought to reduce operating costs through aggressive outsourcing to provide better products at lower prices.
The Company currently intends to use the net proceeds from the Placing for working capital and other general corporate purposes, including sales and marketing expenditures, research and development expenditures and capital expenditures. In addition, the Company believes opportunities may exist from time to time to expand its current business through strategic alliances with, or acquisitions of, other companies, products or technologies.
16th October 2007
