Honeywell International agreed to pay US$1.3 billion for Sparta Systems, an industrial software provider that specializes in life sciences, in what would be the largest acquisition since CEO Darius Adamczyk took the helm in 2017, reported Bloomberg.
The all-cash transaction is expected to close in the first quarter, Honeywell said in a statement Tuesday, December 22. Sparta, based in Hamilton, New Jersey, is part of the portfolio of private equity firm New Mountain Capital. Founded in 1994, the software maker employs about 250 people.
The deal bolsters Adamczyk’s strategy of marrying software capabilities with Honeywell’s industrial technology. Sparta, the largest pure software provider that Honeywell has bought, will complement the manufacturer’s years of experience in providing automation equipment to the life-science industry. Sparta has more than 400 customers, including 42 of the world’s top 50 pharmaceutical companies, Honeywell stated.
While Sparta “will initially help us expand our capabilities for our existing breakthrough initiative in life sciences, we plan to leverage Honeywell’s global footprint and expertise to quickly expand Sparta’s capabilities to serve other markets,” said Rajeev Gautam, president of Honeywell’s Performance Materials and Technologies unit.
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