SPHR Practice Test 14

Calder Precision Instruments acquires Lumen Bioanalytics

Calder Precision Instruments (1,800 employees) makes laboratory instruments. It is known for reliability, layered approvals and detailed procedures. To enter the fast-growing biosensor market, Calder has agreed to acquire Lumen Bioanalytics, a 240-person company whose value lies in its sensor R&D team. The deal closes in 30 days.

Lumen is flat and fast-moving. Small R&D teams decide on experiments themselves, and most staff hold equity. Lumen's founders and 38 key R&D staff were named in the deal as critical to the acquisition's value.

Calder's COO has proposed folding Lumen into Calder's engineering division within 90 days. Under the plan, Lumen would adopt Calder's policies and approval processes, and 22 duplicate finance, HR and IT roles (14 at Lumen, 8 at Calder) would be cut. Separately, Calder must hire about 45 more sensor engineers over the next two years. The CHRO has asked the HR director to advise on the integration.