(Bloomberg) -- Insightful Science, a technology provider to the life sciences industry, has agreed to buy data management company Dotmatics Ltd. as the surge in software deals shows little sign of slowing.

The combined group will generate more than $100 million in annual revenue, the companies said in a statement Monday. Financial terms were not disclosed. The deal is valued at as much as 500 million pounds ($690 million), said people familiar with the matter, who asked not to be identified discussing confidential information.

U.K.-based Dotmatics was founded in 2005 by Merck & Co. scientists Stephen Gallagher and Alastair Hill. It provides software and technology to support drug discovery and development and counts leading pharmaceutical and biotech companies among its customers, according to its website. In 2017, Dotmatics secured investment from Scottish Equity Partners.

“The number one challenge for pharmaceutical, biotech and chemical innovation companies today is how to manage the enormous volume — and promise — of data generated in labs,” Dotmatics Chief Executive Officer Gallagher said in the statement.

Insightful plans to retire its brand and replace it with Dotmatics after the acquisition, Insightful CEO Thomas Swalla said in a separate interview.

Insightful is backed by Insight Partners, the technology-focused venture capital and private equity firm that has invested in companies including analytics platform Qualtrics International Inc., social network Twitter Inc. and hotel bookings site Trivago NV.

The deal for Dotmatics adds to almost $120 billion of transactions involving software companies globally this year, according to data compiled by Bloomberg. That’s up almost two thirds from the same point in 2020, with private equity firms helping to fuel deal volumes.

Bloomberg News reported this month that Thoma Bravo is nearing a deal to buy Calypso Technology Inc. in a transaction valuing the financial software provider at as much as $3.7 billion, while TA Associates is in advanced discussions to acquire Unit4 NV, the enterprise software company owned by Advent International, for more than $2 billion.

Evercore Inc. advised Insightful, while Jefferies International Ltd. worked with Dotmatics. The deal is expected to close in the second quarter.

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