Markets

Veeva's Zinc Ahead Deal: Focus on Compliance Management

Provider of cloud-based software solutions, Veeva Systems Inc.VEEV recently took over Zinc Ahead - a provider of commercial content management solutions - for $130 million. The acquisition is expected to help Veeva meet the increasing demand for compliance management.

Compliance management is an integral part of a business' control process and a requirement for evaluating conformity with certain standards. Amid growing regulatory inspections, life sciences companies are in dire need of a complete solution that will help lessen regulatory risks and simultaneously increase business efficiency. This deal will help Veeva address this issue in a more effective manner.

The Zinc Ahead buyout has brought two of the most comprehensive content management solutions under one roof- Zinc MAPS and Vault PromoMats. Zinc MAPS has been supporting more than 120 life sciences companies since 2001, while over 70 clients has been using Veeva's Vault PromoMats since its inception in 2011.

The joint team will offer both the products till a flawless transition from Zinc MAPS to Vault PromoMats is established. Meanwhile, clients willing to retain Zinc MAPS will be backed till 2020.

According to a report published by MarketsandMarkets , the global enterprise governance, risk, and compliance market is expected to grow from $15.98 billion in 2015 to $31.77 billion in 2020, at a CAGR of 14.7%.

The figures clearly hint at the market's immense prospects and thus Veeva is forging ahead with it plans to gain better traction in this space. With the Zinc Ahead acquisition, the company has certainly added significant domain proficiency which will help it to fortify its hold.

Zacks Rank and Key Picks

Currently, Veeva carries a Zacks Rank #2 (Buy). Other well-placed stocks in the medical sector are Masimo MASI , Thoratec THOR and NuVasive NUVA . All the stocks sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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