Local healthcare software engineering company SMEDIX has entered an agreement to be purchased by powerhouse IT consulting firm Perficient (NASDAQ: PRFT) for an undisclosed acquisition price. With a current valuation sitting at $2.5 billion, St. Louis-based Perficient works across industries including healthcare and life sciences, automotive, high-tech and financial services.
SMEDIX reports its retained $12 million revenue and operates both domestically and overseas in Eastern Europe. “While headquartered in San Diego, SMEDIX maintains an offshore development center with full lab capabilities in Cluj-Napoca, Romania,” SMEDIX President and CEO Fayez Sweiss said. “This offshore division provides the means to do more for less without compromising quality, compliance, or technology. Cluj-Napoca, Romania is surrounded by top polytechnic universities producing highly skilled software engineers. Having a pool of talent enables SMEDIX to provide cost-effective rates to clients all over the world.”
SMEDIX’s reach in Romania will add to Perficient’s international services offered throughout nearly 40 office locations across North America, Latin America, India and Eastern Europe.
“We’re thrilled to continue to strengthen our healthcare industry digital capabilities, enhance our global delivery capacity, and expand further within Eastern Europe with the strategic acquisition of SMEDIX,” said Perficient CEO Tom Hogan. “Nearly 175 skilled global professionals are joining Perficient and bringing their award-winning agile software development, testing and support experience capabilities to the team.”
Software for Healthcare
Based in Sorrento Valley, SMEDIX acts as a full-service software engineering provider that focuses on healthcare solutions. Among several services, it handles software development and regulatory compliance consulting. Team members include experts in instrumentation, control engineering, machine learning, bioinformatics, remote diagnostics, cloud/IoT applications, laboratory information interfaces, test automation, mobile applications, globalization and localization. “With the medical device industry changing rapidly, and across a highly regulated industry software development is one of the best ways to not only keep businesses running but get ahead of the competition,” Sweiss said.
Some of SMEDIX’s local clients include Illumina, Dexcom, ProciseDx and Prometheus Biosciences (now a subsidiary of Merck & Co.). “San Diego is the third largest biotech hub in the country,” added Sweiss. “Since 2000, the industry has grown five times as fast as the local economy, and is home to world-class biotech, medical device and pharmaceutical companies. SMEDIX is headquartered in San Diego given the ‘potential’ client concentration, and also from a recruiting standpoint in attracting some of the top talent in the field of software engineering for medical device software and bio-informatics.”
Perficient also maintains a presence in Southern California, with colleagues in San Diego, LA and Orange County.
Pending customary closing conditions and regulation approval, the acquisition is targeted to close in January. SDMEDIX’s brand will transition to Perficient. Sweiss plans to stay onboard, joining Perficient in a leadership role.
“In five years, I see SMEDIX fully integrated with the Perficient brand, bringing world-class healthcare software development solutions to global healthcare clients,” he shared. “In addition, because of the breadth and depth of Perficient’s expertise, we also have an opportunity to expand our offerings to our customer base. We’re joining a culture that is focused on their people and providing growth opportunities for colleagues located around the world.”
FOUNDER & CEO: Fayez Sweiss
HEADQUARTERS: Sorrento Valley
EMPLOYEES: 175 between San Diego & Romania
BUSINESS: healthcare software
NOTABLE: In 2015, SMEDIX opened an Eastern European branch in Cluj-Napoca, Romania.