(Bloomberg) -- French technology company Dassault Systemes SE will buy Medidata Solutions Inc., a software firm that analyzes clinical trials, in a deal that gives the U.S. company an enterprise of $5.8 billion.
The all-cash deal, which will bolster Dassault’s life-science unit, s Medidata at $92.25 a share. That’s 17% more than Medidata’s closing price on April 18, the last trading day before Bloomberg reported Dassault’s interest in the New York-based company.
The deal is expected to close in the final quarter of 2019, the companies said in a statement.
Drugmakers are outsourcing many of the non-core parts of their research and development efforts to cut down on costs and use specialized providers of services and technology. The deal would help Dassault bolster its life science unit.
Medidata counts most of the biggest drug companies in the world as customers, according to supply-chain data compiled by Bloomberg. It provides a cloud-based subscription service that helps medical device, diagnostic and pharmaceutical companies manage and analyze clinical trials. Its revenue more than doubled from 2013 to 2018, when it brought in $635.7 million.
Dassault has a market of about 36 billion euros ($41 billion). The Vélizy-Villacoublay, France-based company offers software and services for industries ranging from aerospace and defense to consumer goods and life sciences.
©2019 Bloomberg L.P.
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