Oxford Reports

Latest and Independent News

Healthcare News

French Tech Giant Dassault System To Acquire Medidata in $5.8 Billion Deal

Dassault Systems, an industrial design software maker has agreed to buy Meditate for $5.8 Billion in an all-cash deal. Upon buying the Medidata solutions, Bernard Charles, CEO, and Chairman of the company said, “Life science is going to go through accelerated digitization of its own processes, basically. That’s the motivation for Dassault Systemes to buy Medidata Solutions”

The new deal will help the Dassault Systems to diversify it into the pharmaceutical industry. The company said that it was offering $92.25 per share for Medidata, a slight discount to Medidata Solutions’ closing price of $94.75 on June 11. Medidata’s software helps the clinics to handle their back-office operations and also provides analytics tools to track down the clinical trial process.

The whole deal was unanimously agreed by the board of members of the two companies and it is expected that the whole deal will be completed by the end of the year 2019. This deal comes after Google bought the analytics tool Lookup, and Salesforce acquired Tableau, analytics software company. Medidata which competes with IBM, Oracle, and Veera was founded in 1999, went public after 10 years. It’s revenue has increased by 17% which was $635.7 Million and reported a profit of $51.9 Million.

In a blog by Medidata, the company mentioned,

“Today marks a significant milestone for the Life Sciences industry and the value of the virtual world to address the complexity of developing personalized medicine and patient-centric experiences. Multidiscipline scientific innovation and industrial performance call for a platform approach connecting the dots between people, ideas and data,” said Bernard Charlès, Vice Chairman and CEO, Dassault Systèmes. “Medidata’s leading position in clinical trials complements our life sciences solutions on the 3DEXPERIENCE collaborative platform. Medidata’s recent expansion into real world evidence and analytics coupled with the power of modeling and simulation demonstrates how the virtual world will catalyze the next generation of patient-inclusive therapeutics. We are now well positioned to be the enabler of the Life Sciences industry transformation, illustrating our company’s purpose of harmonizing product, nature and life.”

The acquisition will help Dassault to expand in the lucrative medical market. Medidata software analyzes clinical software for big pharmaceutical companies such as Sanofi SA, Pfizer Inc., and AstraZeneca Plc. “It’s about the diversification of their business,” said Matthew Holt, managing director at private equity firm New Mountain Capital. “They understand regulated markets already, so life sciences wouldn’t spook them.”

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *

Brooke Binkowski
Experienced, enthusiastic, award-winning multimedia reporter and editor (digital storytelling, radio, print, video, photography) with especially strong interest in human rights, arts & culture, geekdom, border, environmental, and immigration issues. Backpack reporter.