Honeywell announced it has agreed to acquire privately held Sparta Systems for $1.3 billion in an all-cash transaction from New Mountain Capital. Sparta Systems is a provider of enterprise quality management software (QMS), including a next-generation SaaS platform, for the life sciences industry. The acquisition further strengthens Honeywell's position in industrial automation, digital transformation solutions, and enterprise performance management software.
Honeywell will leverage its global presence, Honeywell Forge and Sparta's expertise to introduce new, integrated solutions, including QMS offerings, for life sciences and adjacent industries. Honeywell's customers will benefit from advanced digital QMS solutions to help them proactively achieve better quality, which results in improved new therapies, faster time to market, better business and patient outcomes, and effective regulatory compliance.
Sparta Systems is headquartered in Hamilton, New Jersery, USA, and has approximately 250 employees globally. Sparta serves more than 400 customers, including 42 of the world's top 50 pharma companies and 33 of the top 50 medical device companies.
Honeywell will continue to enhance TrackWise Digital QMS by adding AI and machine learning capabilities that augment human decision making. Honeywell will also add new IoT-enabled connectivity between quality and operational data to detect manufacturing anomalies and triage quality events in near real time.
The acquisition is expected to close by the end of the first quarter of 2021 and is subject to certain regulatory approvals and other customary closing conditions. There is no change to Honeywell's 2020 financial outlook as a result of the acquisition.