Hartford Business Journal

4 Hartford Business Journal • May 7, 2018 • www.HartfordBusiness.com Week in Review Briefs Farmington biotech raises $2.1M Farmington biotech firm Azitra Inc. said it has raised more than $2 million to accelerate development of its dermatology and skin treatment products. Azitra said it secured $2.1 million in convertible debt financing from an existing lender, Texas venture capital firm Bios Partners, and new investments from Connecticut Innovations. North Carolina-based KdT Ventures, an early stage venture firm, provided additional funding. The company has raised $5.4 million since its inception in 2014. Headquartered at 400 Farmington Ave., Azitra is a preclinical biotechnology company that focuses on treating a variety of skin conditions such as eczema and staph infections by using the skin's own genetic material. Azitra President and CEO Richard Andrews said the investments will allow it to test its products across a variety of common and rare genetic skin diseases, including eczema and ichthyosis vulgaris, which occurs when skin doesn't shed dead skin cells. W. Hartford building automation provider acquires E. Hartford security supplier West Hartford-based building automation provider Environmental Systems Corp. said it has acquired an East Hartford security system supplier. Environmental Systems Corp., also a supplier of security, fire alarm and mechanical systems, will absorb Associated Electronic Systems and its five employees, who provide software design and development for life safety, security, and communication system integration, among other services. About 40 of Environmental Systems' 130 employees are located in its headquarters at 18 Jansen Court and the remaining workers, such as technicians, are on the road serving clients across Connecticut, a spokeswoman said. Associated Electronic Systems' name will be phased out and its operations will be moved to ESC. Since its inception in 1978, Associated Electronic Systems has mainly provided security and fire alarm systems to commercial and industrial customers, concentrating on government facilities. W. Hartford's SCIO Health Analytics acquired in $240M deal SCIO co-founder and CEO Siva Namasivayam. West Hartford-based SCIO Health Analytics said it has agreed to be acquired by a New York-based operations management and analytics company, in a deal worth $240 million. EXL, which is a publicly traded company, announced its proposed acquisition of SCIO, which will continue to operate at 433 S. Main St., providing health analytics services to payers, providers and life sciences organizations that aim to improve revenue and uncover fraud and abuse around prescription pharmaceuticals, among other services. The deal price is subject to change based on SCIO's cash, debt and capital position, the companies said. The acquisition is expected to close in the next three months, EXL officials said. A SCIO spokeswoman said the merger allows the West Hartford company to access new capital and markets as well as EXL's client base. SCIO co-founder and CEO Siva Namasivayam called EXL a "leader in healthcare analytics." TOP STORY Electric Boat to receive $80M-plus in state aid for job growth, expansion G roton submarine maker General Dynamics Electric Boat will receive over $80 million in state aid to help it add more than 1,881 new jobs over the next 17 years, the governor announced. Gov. Dannel P. Malloy said the Connecticut Department of Economic and Community Development (DECD) will provide several incentives to Electric Boat over the life of the agreement, which runs through 2034. At that point, EB pledges to have more than 13,000 employees in the state. The funding includes a $35-million loan for machinery and equipment purchases and up to $20 million from Connecticut Innovations in sales-and-use tax exemptions for capital and new construction on Electric Boat's Groton campus. Other DECD funding includes $20 million for dredging to allow submarine launches from a new dock and building a superstructure to support new submarine construction. The state will also provide an $8-million grant for third-party workforce development initiatives through community colleges, technical high schools and organizations across Connecticut. Malloy said the funding will help Electric Boat initiate capital investments of more than $852 million over the next 17 years, which will also double the company's $250 million in annual spending on Connecticut suppliers located in 102 cities and towns. BY THE NUMBERS $248,000 The median home sale price in Con- necticut during the month of March, which was up nearly 8 percent from the year-ago period. 46th Connecticut's credit-quality ranking out of 50 states in Conning's latest "State of the State's" report. $2B A tax-driven windfall of state revenues that lawmakers are not allowed to use to balance the next state bud- get because of a new self-imposed "volatility cap." $2.95 The amount of money Connecti- cut spends per day on each prison inmate's food, less than at least three other New England states, but more than New York. TOP 5 MOST READ On HartfordBusiness.com • 1. DRS' Sullivan leaving May 10 • 2. Electric Boat to receive up to $83M in state aid for job growth, expansion • 3. CT business coalition slams "workplace fairness" bills • 4. W. Htfd's SCIO Health Analytics acquired in $240M deal • 5. Hartford to host annual PGA meeting in 2020 STAY CONNECTED For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com HBJ on Twitter: @HartfordBiz HBJ on Facebook: www.facebook.com/HartfordBiz HBJ on Linkedln: www.linkedin.com/company/ the-Hartford-Business-Journal Daily e-newsletters: HBJ Today, CT Morning Blend www.HartfordBusiness.com/ subscribe Weekly e-newsletters: CT Health Care Weekly www.HartfordBusiness.com/ subscribe A photo of a Virginia-class submarine made by Electric Boat. PHOTO | CONTRIBUTED PHOTO | HBJ FILE

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