French software maker Dassault Systemes is in negotiations to purchase drug trial software company ArisGlobal from Nordic Capital for about $2 billion. This potential acquisition would mark Dassault Systemes' second-largest deal, following its $5.8 billion takeover of clinical trial software group Medidata Solutions in 2019, further solidifying its presence in the life sciences sector.
ArisGlobal reportedly generates annual sales of around $200 million, with a significant portion, nearly half, attributed to AI services. This acquisition could strategically bolster Dassault Systemes' capabilities in optimizing clinical trials and enhance its competitive edge in the rapidly evolving drug development and clinical research market, where artificial intelligence plays an increasingly crucial role.
The discussions, however, are ongoing, and a finalized transaction is not guaranteed, with the possibility of talks falling apart. As of the report, Dassault Systemes, ArisGlobal, and Nordic Capital have not publicly commented on the potential deal. Dassault Systemes has been diversifying its growth strategy, increasingly focusing on augmented AI and data centers, especially amidst a prolonged slowdown in the global auto industry, a sector it traditionally serves with software for automakers, plane manufacturers, and industrial firms.
In April, Dassault Systemes reported first-quarter revenue of 1.51 billion euros ($1.77 billion), meeting analyst estimates. The company, founded in 1981, is a prominent provider of computer-assisted design and product lifecycle management software, with a market capitalization of approximately $27.42 billion.
