French tech giant Dassault is nearing deal to buy health software company Medidata

Health, Fitness & Food

Bernard Charles, chief executive officer of Dassault Systemes SA.

Simon Dawson | Bloomberg | Getty Images

French technology company Dassault Systèmes is nearing a deal to acquire Medidata Solutions, according to people familiar with the matter.

The likely agreement was reported earlier by Bloomberg, which also published a story in April saying the companies were in talks. Neither company responded to CNBC’s request for comment.

Medidata’s software is used to help clinics manage their back office operations and their data, and it provides analytics tools so they can make sense of massive amounts of information. Medical device companies also use it to track the process of their clinical trials.

The expected deal comes as the M&A market picks up for fast-growth software companies. Google acquired data analytics company Looker last week for $2.6 billion, and Salesforce followed on Monday with its biggest deal ever — the $15.3 billion purchase of Tableau Software.

Medidata, which competes with health software from vendors like IBM, Oracle and Veeva, was founded in 1999 and went public ten years later. Revenue increased 17% last year to $635.7 million and the company reported net income of $51.9 million. It currently has a market value of $5.9 billion, and the stock has climbed 17% in the past year. It gained an additional 6.1% after the Bloomberg report.

“Medidata has always been an extremely well run company and a juggernaut in their space,” said Bijan Salehizadeh, a medical technology investor at NaviMed Capital. “It’s an A-plus asset.”

Dassault sells software to transportation, aerospace and life sciences companies to help them digitize their businesses. 

— Ari Levy contributed to this report

Products You May Like

Articles You May Like

Parents look to private schools for in-person instruction as school districts announce online starts
World Health Organization asks the U.S. to reconsider withdrawing from international group
Dr. Anthony Fauci says chance of coronavirus vaccine being highly effective is ‘not great’
Elizabeth Holmes’ Theranos trial set to begin on March 9, 2021
Winter is coming: Why America’s window of opportunity to beat back Covid-19 is closing

Leave a Reply

Your email address will not be published.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