Instem acquires BioWisdom

Healthcare IT services provider Instem Life Sciences is buying Cambridge-based BioWisdom, which supplies software to analyse R&D-related healthcare data. AIM-quoted Instem is paying an initial enterprise value of £900,000, although that figure could increase to £1.5m depending on performance in 2011 and 2012. The BioWisdom software is a good fit with Instem's Centrus product suite, which was launched last September. Less than one-fifth of BioWisdom's customers are also customers of Instem. The deal increases the market that the group can address.More than two-thirds of BioWisdom's revenues are recurring. In 2010, BioWisdom generated revenues of £1.55m. BioWisdom founder Dr Gordon Baxter becomes chief scientific officer of Instem. Biotech Growth Trust owned a small stake in BioWisdom. Biotech Gwth