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Dassault signs agreement to buy Medidata
Posted on Wednesday, 12 June 2019 11:51
Dassault Systèmes has reached an agreement to acquire the digital transformation clinical development group Medidata Solutions in a deal worth USD 5.80 billion.
Under the terms of the transaction, the buyer is offering USD 92.25 per item of stock held in the target, representing a slight premium to its closing price of USD 90.79 on 10th June, the last trading day prior to the announcement.
Shares in Medidata rose 4.2 per cent when the bell rang yesterday to USD 94.75, giving the business a market capitalisation of USD 5.90 billion, following the news of the takeover.
According to Zephyr, the M&A database published by Bureau van Dijk, the deal represents the second-largest to be announced in the global data processing, hosting and related services sector in 2019 to date and the number one of these companies to feature in the healthcare market.
So far, the largest of these transactions involves Softbank, via West Raptor Holdings, selling shares in online e-commerce giant Alibaba Group Holding worth JPY 1,200 billion (USD 11.05 billion).
Dassault is expecting Medidata to accelerate its life sciences capabilities for patient-centric experience.
The New York-based target claims to be a market leading clinical cloud company used by over 1,300 customers worldwide to develop their therapeutic innovations and clinical operations performance.
Dassault has been applying its knowledge for transforming the product sphere to collaborative, multidisciplinary innovation in the biosphere.
It works with the world’s top 20 biopharmaceutical companies, hundreds of biotechnology groups and other businesses in the industry to develop and bring to market health products using virtual universes to transform patient experiences.
The company believes the acquisition will complete during the fourth quarter of 2019, following the receipt of shareholder and regulatory approvals.
Medidata is powered by artificial intelligence and has roughly 100,000 certified users every day.
It has run over 17,000 trials, on 5.00 million subjects and claims to use its technologies to power 13 of the top 15 drugs sold globally.
Medidata recorded revenue of USD 173.50 million in the three months ended 31st March 2019, a 16.3 per cent increase on USD 149.20 million in the corresponding period of 2018.
Net income for the timeframe totalled USD 11.15 million, up 7.9 per cent from USD 10.33 million in Q1 2018.
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