Being a small software division within a large company can be challenging, particularly when the parent’s core business is not directly related.
That’s exactly what happened when a multinational conglomerate had acquired POMS Corporation, an MES solutions provider for big pharmaceutical companies. Not long after the acquisition, the parent’s interests shifted away from the pharmaceutical and biotechnology industry – and so did the funding.
However, before it was too late, POMS was able to join Perseus, an operating group of Constellation Software Inc., and start its journey back to the top.
“With Perseus, we can plan our own strategies and have more capital to reinvest in initiatives than before.” Tom Farenholtz, POMS General Manager
Delivering Top-Quality MES Solutions since 1987
Founded in 1987, POMS helps regulated manufacturers boost their competitiveness by offering them MES solutions that seamlessly integrate with other enterprise applications and meet the stringent quality and compliance requirements in the cGMP environment.
Headquartered in Washington, D.C., with development centers in Blacksburg, Virginia and Karachi, Pakistan, as well as offices in Frankfurt, Germany, and Herzlia, Israel, POMS provides comprehensive worldwide support services in local languages to all of its customers and certified business partners.
Looking for a Better Home
In 1999, a large conglomerate made an above-market value investment to purchase POMS because it was looking to expand aggressively into the pharmaceutical and biotechnology industry.
After failing to properly fund POMS from 2005 to 2012, the parent decided to sell POMS and focus on its core business. Since the parent didn’t want to risk losing POMS’ customers, it was looking for a buyer that would ensure the company’s continued success.
POMS, on the other hand, wanted to continue doing what it was doing – but with more resources and control over the business.
Starting Anew with Perseus
Perseus turned out to be a great match for both POMS and the multinational conglomerate that owned it due to its willingness to invest in POMS’ future and close the deal quickly.
Meeting the 2012 deadline
The parent wanted to sell POMS before 2012 to receive beneficial tax treatment. By acquiring POMS quickly, Perseus allowed for the seller to write off the goodwill on the purchase and avoid additional tax deductions.
Keeping the core of the company
To make the transition as smooth as possible, Perseus’ team helped POMS reassure its customers that the acquisition will not change the company’s solutions or the way it operates.
To reaffirm that, Perseus appointed POMS’ department manager, Tom Farenholtz, as the company’s general manager – due to his past experience with creating and selling businesses.
“Despite having multiple owners, POMS has remained the same company as in the early days, having retained many of the original employees. This has allowed us to retain the same level of service as before, and Perseus aims to keep it that way.”
Under prior ownership, POMS’ Sales, Support, Operations and R&D employees had been merged with independent division-wide teams responsible for large product portfolios instead of remaining dedicated to the core MES business.
To reverse this, Perseus gave the control of these departments back to POMS, making the organization whole and efficient again.
In addition, Perseus has provided POMS with:
- The ability to plan its own strategies
- Best practices and target ratios to help fine-tune the business
- More capital to reinvest in various initiatives
- Bonuses weighted toward the performance of the business as opposed to the entire operating group.
What’s in store for the future?
POMS is currently in the middle of organizational restructuring and developing a new management team. Once that’s out of the way, it will be ready to fully tackle new initiatives and growth opportunities.
Meanwhile, Farenholtz is focused on finding complementary MES companies to help expand POMS’ core offering and provide the customers with more features and services faster and cheaper.
“Right now, I’m trying to identify possible acquisition targets,” said Farenholtz. “I go to trade shows, speak with business owners, do some background research on them and talk with competitors.”
And this is just the beginning.