Certara to Acquire Chemaxon

By Bobby Samwell • Wednesday, July 10 07:56 • Permanent Link

Certara, Inc. (NASDAQ: CERT), a global leader in model-informed drug development, has announced its plans to acquire Chemaxon, a leading provider of cheminformatics software. This strategic move is expected to enhance Certara's predictive capabilities in drug discovery at scale, as the combined organization aims to offer comprehensive data and predictive analytics platforms for life sciences companies.

In 2024, Chemaxon is projected to generate software revenue exceeding $20 million. The company's revenue growth profile is comparable to Certara's software business, and it is anticipated to achieve an adjusted EBITDA margin near Certara's corporate average by the end of 2025.

Certara, excluding Chemaxon, has reiterated its 2024 revenue, adjusted EBITDA margin, and adjusted diluted earnings per share guidance consistent with previous announcements. Following the completion of the transaction, Certara plans to update its 2024 guidance to include the contribution from Chemaxon and expects to maintain its 2024 adjusted EBITDA margin guidance of 31-33%.

The CEOs of both companies expressed their shared vision of advancing science and innovation in life sciences and highlighted the potential for the combined entity to offer clients the ability to conduct in-silico research, informing better decision-making at every phase of development.

Certara, with its mission to accelerate medicines using biosimulation software, technology, and services, has a client base of over 2,400 biopharmaceutical companies, academic institutions, and regulatory agencies across 66 countries. On the other hand, Chemaxon is a leading cheminformatics company that provides platforms, applications, and solutions to handle chemical entities in various research industries.

The acquisition of Chemaxon by Certara is subject to regulatory approval and other customary closing conditions, with the transaction expected to be completed in the second half of 2024. As a result of these announcements, the company's shares have moved -2.0% on the market, and are now trading at a price of $14.02. For the full picture, make sure to review Certara's 8-K report.

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