Simulations Plus acquires Cognigen

Simulations Plus, Inc. (NASDAQ: SLP) said that the agreement and plan of merger with Cognigen Corp. of Buffalo, New York, has been closed and the two companies are now merged.

Upon closing, Cognigen has become a wholly-owned subsidiary of Simulations Plus and will continue to operate under the Cognigen name. As a result of this accretive acquisition, the total number of Simulations Plus employees is increasing from 30 to 65, and it is expected to add approximately USD5m to the revenues of the combined company in the coming fiscal year.

Simulations Plus will pay the shareholders of Cognigen total consideration of USD7,000,000, comprised of USD2,800,000 of cash and USD4,200,000 worth of newly-issued, unregistered shares of common stock of Simulations Plus. The agreement provides that USD1,800,000 of the total consideration will be held back for two years to satisfy any indemnifiable claims that may arise pursuant to the terms of the Agreement.

Excel Partners, an investment bank with offices in New York and Los Angeles, acted as exclusive financial advisor to Simulations Plus in connection with this transaction.

Simulations Plus, Inc. is a premier developer of groundbreaking drug discovery and development simulation and modeling software that is licensed to and used in the conduct of drug research by major pharmaceutical, biotechnology, agrochemical, and food industry companies worldwide. It is headquartered in Southern California with a website at www.simulations-plus.com.

Cognigen Corp. was founded in 1993 in Buffalo, New York and is a provider of clinical trial data analysis. More information is available on the company´s website at www.cognigencorp.com.

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