Merck To Build $20M IT Hub In Austin, Creating Up To 600 Local Jobs

AUSTIN, TX — Merck, one of the world's largest pharmaceutical companies, is locating its newest IT hub in Austin, officials said Monday.

The hub will team up with local partners that include Dell Medical School at UT Austin, the Austin Healthcare Council and other regional entities in delivering innovative health solutions, officials said. The project involves a $20 million investment and creation of at least 600 jobs, helped along with a $6 million Texas Enterprise Fund (TEF) grant offer for Merck, according to state officials.

"Texas continues to excel as an economic powerhouse because global industry leaders like Merck recognize the Lone Star State as a premier state for business expansion and enterprise," Gov. Greg Abbott said in a prepared statement. “I am extremely encouraged by Merck’s investment in Texas, and for the opportunities and jobs that will come along with it."

Sen. Kirk Watson noted the presence of Dell Medical School at the University of Texas at Austin figured prominently in Merck's decision to locate its hub in Austin.

"A major factor in Merck picking Austin is the Dell Medical School at the University of Texas," Watson said. "And Dell Medical School would not be here but for the investment by Travis County taxpayers. With this project, we have further proof that investment is paying the dividends we promised by improving both the health of our community and our economy."

For his part, Clark Golestani, president of emerging businesses and global CIO at Merck, lauded state and city officials for helping ensure creation of the future hub. The location for the new center hasn't yet been decided upon, officials noted.

“It has been a pleasure working with the State of Texas, and the City of Austin, on the plans for our newest IT Hub,” Golestani said. “We look forward to working with the innovative and collaborative community there, including partners like the Dell Medical School at UT Austin and the Austin Healthcare Council. Our goal is that, together, we can connect technology and science to invent medicines and vaccines to help improve or save people’s lives.”

Kerry Hall, the chair of Opportunity Austin, an initiative of the Austin Chamber, touted the hub's potential for job growth.

“We are excited that Merck has selected Austin as home for their 4th Innovative IT Hub in the world," Hall said. "Merck’s presence in the Austin community enhances our position as a global leader in technology, innovation, and job growth. Securing this international and innovative company was truly a team effort, working side-by-side with the City of Austin and our state and regional partners over the past year. The potential partnership between Merck and Dell Medical School is a testament to the qualities of Austin as a place for investment in medical technology and healthcare delivery as well as our city's ability to work together to recruit great businesses and jobs."

Dr. Clay Johnston spoke of the hub's implications in terms of delivering health care to residents.

“In Austin, we think Merck sees an unprecedented effort by a number of partners to transform the ecosystem around people’s health, not just health care,” Johnston, inaugural dean of the Dell Medical School at The University of Texas at Austin, said. “We’re hopeful that we’ll find ways to work with them on a wide range of efforts to reduce health inequities, improve patient outcomes and lower costs to the community. Just as they need an all-in community like Austin to advance some of their person-centered goals, our community needs a well-resourced, internationally engaged collaborator that will catalyze collaborative efforts to transform the ways people get and stay healthy.”

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