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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 CNBCs request for comment. Medidata stock rose more than 5% after hours on the news.
Medidatas 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. "Its 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