ABB Ltd
12 October 2000
ABB Corporate Communications, Zurich
Thomas Schmidt
Tel: +41 1 317 7354
Fax: +41 1 317 7958
media.relations@ch.abb.com
ABB Investor Relations
Switzerland: +41 317 7266
Sweden: +46 21 32 5928
USA: +1 203 750 7743
Investor.relations@ch.abb.com
ABB acquires pharmaceutical software technologies
Base Ten solutions expand ABB's Industrial IT offerings
Zurich, Switzerland, October 12, 2000 - Global technology group ABB announced
today it has agreed to acquire the rights and associated research and
development resources - so-called strategic pharmaceutical software technologies
- from Base Ten Systems Inc. of the U.S.
ABB said it is acquiring Base Ten's Manufacturing Execution Systems (MES)
software, which is used while manufacturing pharmaceutical products. The
acquisition will significantly expand ABB's Industrial IT capabilities in this
key sector, the company said. ABB is already the world's leading supplier of
industrial automation systems used for chemical synthesis, an early stage of
pharmaceutical production. Base Ten's ME/CS (Pharma2 and Pharmasyst) and
Flowstream (FS) products, alongside Base Ten's international project services
team, will provide ABB opportunities to extend its offerings to final 'product'
pharmaceutical production, added ABB.
The financial terms of the deal were not disclosed. Base Ten is headquartered
in Trenton, New Jersey, in the United States, and employs some 40 people in its
MES-related activities, including an office in Mechelen, Belgium.
Jorgen Centerman, ABB Executive Vice President and head of the company's
Automation segment, said the acquisition builds on ABB's current expertise in
Industrial IT system integration. 'We already offer similar solutions in other
industries, like pulp and paper,' Centerman added. 'Base Ten's MES technology
broadens our software capabilities in the dynamic pharmaceuticals market so that
we can deliver a complete IT solution covering the whole value chain.'
MES systems are used to integrate industrial automation systems on the plant
floor with higher level IT systems, like ERP (Enterprise Resource Planning) and
document management systems. In the pharmaceutical industry, MES systems are
key to managing the flow of information from raw material supply to putting
pills in the bottle. Managing this information effectively is important not
only to operational efficiency, but is also needed to quickly meet reporting
obligations to regulatory authorities, such as the U.S. Food and Drug
Administration (FDA).
These software technologies are also key to fully integrating all activities
inside an enterprise into a single, complete picture of the business that allows
managers to make better decisions faster.
Stephen Cloughley, President and CEO of Base Ten Systems Inc. said, 'I believe
that this acquisition provides our MES customers with the breadth of service and
the financial strength they need from their technology provided to fully realize
the promise of MES. At the same time, it offers Base Ten's shareholders the
opportunity for a more streamlined and focused organization going forward.'
By expanding into the 'finishing' end of the pharmaceuticals manufacturing
process, ABB expects to create synergies with other parts of its business, such
as robotics and flexible automation. The acquisition also gives ABB a system
offering that spans the entire pharmaceuticals manufacturing process. In
addition, ABB can use its global scope and strong existing position in the
pharmaceuticals sector to offer this IT solution to a broader customer base.
ABB's total sales in industrial automation for the global pharmaceuticals market
is currently about US$90 million a year.
The ABB Group (www.abb.com) serves customers in power transmission and
distribution; automation; oil, gas, and petrochemicals; building technologies;
and in financial services. With novel IT applications, tailored software
solutions, growing eBusiness and a fast-expanding knowledge and service base,
ABB is building links to the new economy. The ABB Group employs about 160,000
people in more than 100 countries.
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