Cognizant Technology Solutions (VARBusiness 500 rank #53), has agreed to buy marketRx, in a $135 million cash deal. MarketRx, a provider of analytics and related software to companies in the pharmaceutical, biotechnology and medical device markets, should help Cognizant round out its life sciences offerings.
"We are acquiring this company, marketRx, which is the largest, independently owned market analytics company in the field, " said William Mougayar, vice president of Cognizant marketing. "It will be a great compliment to our life sciences practice. Its global delivery is similar to how we do business: Part of marketRx' employees are in New Jersey, and part are in India." Mougayar added that the New Jersey staff would remain intact.
The deal allows Cognizant to expand its reach in the life services market through marketRx' highly regarded brand. In fact, marketRx has operations in New Delhi, a gap Cognizant has that will be filled through the acquisition. In addition, the smaller company, which has a total of 430 employees, will provide expertise in market analytics, and will bring a client base that includes the largest 20 pharmaceutical companies.
Prior to the agreement earlier this week, InfoSys, Wipro and other India-based solution providers were thought to be on the fast track to scooping up marketRX. Some business observers expressed surprise that Cognizant was the ultimate winner.
"It was no secret that the company was for sale. [MarketRx] looked at everyone from Accenture to niche players," noted Mougayar. "We ended up winning for a number of reasons. One, they felt we had the strongest life sciences offering and that we could do more for their company than the others. Two, we fit with their management style. They felt an affinity for our younger, entrepreneurial style. The other companies that were interested in buying marketRx have an older, more traditional style. Three, we consider ourselves a U.S. company. We are here, in the United States -- this is where our decision making is. And four, they saw we had the ability to take their services to other industries. They wanted to sell to a company that could give something to marketRx, rather than them just giving to the buyer."
The transaction is scheduled to close in the fourth quarter.
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