QHP Capital-Backed Pro-ficiency Acquired by Simulations Plus
QHP Capital has announced the sale of Pro-ficiency, a provider of tech-enabled training and compliance solutions for clinical trial investigators, to Simulations Plus (Nasdaq: SLP). Pro-ficiency has grown significantly since QHP's initial investment in 2021, completing acquisitions of Fugitive Labs in 2022 and Compass Group Partners in 2023.
Simulations Plus, a leader in modeling and simulation software and services for pharmaceutical safety and efficacy, views this acquisition as a strategic move to expand its market reach and enhance service offerings. Pro-ficiency's CEO, Michael Raymer, expressed enthusiasm about the merger, highlighting the complementary operations and aligned cultures of the two companies. Both teams are aiming to leverage each other's strengths to improve client performance and attract new customers with comprehensive solutions.
- Simulations Plus is acquiring Pro-ficiency, enhancing its portfolio with tech-enabled training solutions.
- Pro-ficiency has shown significant growth with acquisitions of Fugitive Labs in 2022 and Compass Group Partners in 2023.
- The merger aims to expand market reach and offer end-to-end solutions to clients.
- Complementary operations and aligned cultures between Simulations Plus and Pro-ficiency could enhance performance and client satisfaction.
- The financial details of the acquisition are not disclosed, leaving uncertainty about the immediate financial impact on SLP.
- There could be integration risks as both companies align their operations and cultures.
Insights
From a financial perspective, the acquisition of Pro-ficiency by Simulations Plus is noteworthy. Simulations Plus has a solid track record in the pharmaceutical modeling and simulation space. By acquiring Pro-ficiency, they are expanding their portfolio to include tech-enabled training and compliance solutions, which is a strategic move to diversify their offerings. This acquisition could potentially lead to increased revenue streams and enhanced market position. Investors should keep an eye on how quickly and efficiently the integration of Pro-ficiency's operations takes place. While the complementary nature of their operations is a positive sign, the real financial benefits will materialize based on how well they can leverage synergies and cross-sell services.
In the short term, there might be integration costs, but in the long run, this could bolster Simulations Plus' competitive edge and market share. By adding Pro-ficiency's capabilities, Simulations Plus can offer a more comprehensive suite of services, which could attract more clients and increase customer retention.
From a market perspective, this acquisition is a tactical decision that significantly enhances Simulations Plus' positioning within the pharmaceutical and biotech sectors. Pro-ficiency's expertise in tech-enabled training and compliance solutions complements Simulations Plus' existing capabilities in modeling and simulation. This can lead to a stronger, more integrated service offering that caters to the comprehensive needs of clinical trials and pharmaceutical development.
The focus on growth and leveraging specialized offerings indicates a forward-thinking approach. The market could see this as an opportunity for Simulations Plus to differentiate itself further from competitors. Pro-ficiency's recent acquisitions, such as Fugitive Labs and Compass Group Partners, indicate solid growth and innovation, adding credibility and value to the deal.
In the long term, this could foster better customer experiences and higher operational efficiencies, positioning Simulations Plus as a more formidable player in the industry.
Michael Raymer, Chief Executive Officer of Pro-ficiency, said, “We are excited to join the Simulations Plus team, which has a well-established and recognized leadership position in modeling and simulations within the pharmaceutical and biotech community. Both teams approached this transaction with a growth mentality. We look forward to leveraging Simulations Plus’ specialized offerings and business development infrastructure to expand our combined market reach. Finally, our operations are complementary, our cultures are aligned, and together we believe we can elevate the performance of our mutual clients as well as attract new ones with our end-to-end solutions.”
QHP Capital made its original investment in Pro-ficiency in 2021. The Company then completed several additional acquisitions in the investment period with Fugitive Labs, LLC in 2022 and Compass Group Partners in 2023.
“We are very pleased with the growth and innovation we have seen these past few years at Pro-ficiency. We are excited to see them continue to improve clinical development as part of the SLP offering," said Michael Sorensen, Partner at QHP Capital.
About Pro-ficiency:
Pro-ficiency is a leading provider of tech-enabled training and compliance solutions for clinical trials. The Company provides a comprehensive suite of services, including a turn-key offering of customized, virtual training simulations, training and compliance monitoring tools, and real-time data & predictive analytics. For more information, please visit www.pro-ficiency.com.
About Simulations Plus, Inc:
Serving clients worldwide for more than 25 years, Simulations Plus is a leading provider in the biosimulation market providing software and consulting services supporting drug discovery, development, research, and regulatory submissions. We offer solutions that bridge machine learning, physiologically based pharmacokinetics, quantitative systems pharmacology/toxicology, and population PK/PD modeling approaches. For more information, please visit www.simulations-plus.com.
About QHP Capital:
QHP Capital is an investor in technology and services companies in the life sciences and healthcare sectors. QHP Capital spun out of NovaQuest Capital Management, which was formed in 2000 with the vision of building an investment platform to provide strategic capital and industry expertise in partnership with strong management teams. The investment team consists of seasoned investment and operational professionals with significant investment experience and deep life science and healthcare expertise. QHP benefits from an extensive network of industry experts and relationships that assist in identifying, analyzing, and growing QHP’s portfolio companies. QHP continues as the investment manager for NovaQuest Private Equity funds. For more information, please visit www.qhpcapital.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240611617725/en/
For further information about Pro-ficiency, please contact:
Investor Relations Contact:
Renee Bouche
(661) 723-7723
renee.bouche@simulations-plus.com
For QHP inquiries, please contact:
Silvia Cruz
(919) 261-5266
silvia.cruz@qhpcapital.com
For media inquiries, please contact:
Jeremy Milner
BackBay Communications
(401) 862-9422
jeremy.milner@backbaycommunications.com
Source: QHP Capital
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