As biopharma companies of all stripes devote more time and attention to AI-based drug discovery and development, healthcare PE firm Altaris is bolstering its presence in the field through M&A.
In exchange for $375 million in cash, the company is picking up Simulations Plus, which touts itself as a “global leader in model-informed and AI-accelerated drug development.”
Simulations Plus shareholders are set to collect $18.50 per share upon the close, a 26% premium to the company’s 60-day average share price before the buyout, according to a June 16 release.
After the deal closes, expected in the fourth quarter of this year, Altaris plans to combine Simulations Plus with its existing portfolio company, Chemical Computing Group, which provides computer-aided molecular design software for the pharmaceutical, biotech, crop sciences and other industries.
Still, Simulations Plus expects its headquarters to remain in Research Triangle Park, North Carolina, after the close.
Founded 30 years ago, Simulations Plus provides modeling and simulation software for companies engaged in drug discovery, development research and regulatory submissions, according to its website. Its platforms are in use by major pharma and biotech companies, as well as consumer goods firms and regulators.
The firm incorporates AI, machine learning, physiologically based pharmacokinetics, population PK/PD modeling approaches and more, the site says.
As for Altaris, the New York City-based investment firm places its focus squarely in the healthcare industry and has more than $9 billion in equity capital, according to the release. Over the years, it’s made M&A plays in the digital health, health imaging and generics fields, among many others.