Dassault Agrees to Buy Medidata in $5.8 Billion Health Tech Deal
Dassault Agrees to Buy Medidata in $5.8 Billion Health Tech Deal
(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 value of $5.8 billion.
The all-cash deal, which will bolster Dassault’s life-science unit, values 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 value 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.
--With assistance from Liana Baker.
To contact the reporters on this story: Ed Hammond in New York at ehammond12@bloomberg.net;Ruth David in London at rdavid9@bloomberg.net;Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.net
To contact the editors responsible for this story: Elizabeth Fournier at efournier5@bloomberg.net, ;Daniel Hauck at dhauck1@bloomberg.net, Jeff Sutherland, Thomas Mulier
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