DS buys Medidata clinical trial software

Jun 12, 2019 | Hot Topics

Super quick: Dassault Systèmes announced that it is buying Medidata Solutions for $5.8 billion in cash. Medidata is publicly traded in the US and makes software used in clinical drug trials.

This had been rumored for a while, with DS CEO Bernard Charlès telling investors on the last earnings call not to jump to conclusions (something like that – I’m in Las Vegas and my notes are in Boston) — but here we are.

One thing about the deal: DS is offering $92.25 per share, slightly lower than the closing price for Medidata shares yesterday but at a 6ish% premium to the average share price over the last 50 days. Not sure, therefore, if shareholders will go for the deal.

I’ve only read the press release in which M. Charlès said that “Medidata’s leading position in clinical trials complements our life sciences solutions on the 3DEXPERIENCE collaborative platform … Multidiscipline scientific innovation and industrial performance call for a platform approach connecting the dots between people, ideas and data.” I’m sure there’s more rationale on the investor call.

Reuters reports that DS has “signed a debt financing deal worth around 4 billion euros to fund its purchase of Medidata”.

More when there’s time.