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Dassault Systemes to buy Medidata Solutions in $5.8 billion deal

Reuters 2019-06-12 05:30:00

PARIS (Reuters) - French technology company Dassault Systemes has agreed to buy Medidata Solutions, a U.S. software company dealing in the sphere of clinical trials, in a record deal for Dassault worth $5.8 billion on an enterprise value basis.

Dassault Systemes said it was offering $92.25 per share for Medidata, a slight discount to Medidata Solutions’ closing price of $94.75 on June 11.

Medidata has a stock market capitalisation of around $5.9 billion, according to Refinitiv Eikon data, while Dassault Systemes has a market capitalisation of around 36 billion euros ($40.8 billion).

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Dassault Systemes said the takeover would strengthen its position in the life sciences field and boost its earnings from 2020 onwards.

“Medidata’s leading position in clinical trials complements our life sciences solutions on the 3DEXPERIENCE collaborative platform,” said Dassault Systemes CEO Bernard Charles.

Dassault Systemes’ finance director, Pascal Daloz, said that the French company had signed a financing deal worth around 4 billion euros to fund its purchase of Medidata.

Dassault Systemes has been on the takeover trail of late, and its acquisition of Medidata follows earlier takeovers of other software companies such as Trace Software and Argosim.

Medidata had 2018 revenue of $636 million, and Dassault Systemes expects to close the acquisition during the fourth quarter of 2019.

($1 = 0.8825 euros)