Newcastle medical software firm sold to US corporation

A Newcastle company that provides cutting-edge data analysis software for life-science researchers around the world has been sold to a global corporation

The team involved in the sale
The team involved in the sale

A Newcastle company that provides cutting-edge data analysis software for life-science researchers around the world has been sold to a global corporation.

Nonlinear Dynamics, based at the city’s quayside, has been acquired by analytical science technologies developer Waters Corporation for an undisclosed sum.

The North East company was founded by chief executive Will Dracup in 1989 and has as a US office in Durham, North Carolina, as well its Newcastle headquarters.

It will now be part of the Waters Division, a leading provider of liquid chromatography and mass spectrometry instruments, software, consumables, and related services aimed at delivering practical and sustainable innovation for scientific advancements in areas like healthcare, environmental management, food safety and water quality worldwide.

Dracup, whose other two Newcastle companies TotalLab Ltd and Biosignatures Ltd were not included in the sale, said: “This is a significant deal and one which throws the global spotlight on North East expertise and innovation.

“The work we have been doing in the field of laboratory data analysis has put Nonlinear Dynamics at the cutting edge of our industry and this acquisition underlines our progress. We have drawn on a vast amount of North East expertise to bring this deal to fruition.”

With revenue of $1.84bn in 2012, Waters is one of largest companies in the analytical science industry, employing 5,700 people, operating in 27 countries and supporting scientists working in 100,000 laboratories.

Nonlinear Dynamics has previously worked with the group, and in August 2012 announced an agreement to co-develop a new analytical solution that derives information from complex data sets generated by large-scale experiments.

Nonlinear Dynamics was advised ahead of the deal by tax specialists at Deloitte in Newcastle, which has been advisor to the company for the last 15 years.

Tax partner Stephen Hall said: “We have worked closely with Nonlinear Dynamics for many years now, particularly looking at developing strategies to attract the investment needed to achieve its ambitious plans.

“The tax team at Deloitte advised on a pre-transaction restructure of the company, and also worked a number of aspects around the deal, including management taxes, post-sale proceeds, warranties and indemnities and VAT.

“It is always pleasing to see a significant deal come to fruition and we feel our long-standing relationship with Nonlinear Dynamics has played a part in this success.”

Nonlinear Dynamics was also advised by the technology team at law firm Bond Dickinson.

Sean Nicolson, a partner in the team, said it was “gratifying” to see such a successful outcome, having worked with the company on many fund-raisers and collaborations.

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