Dassault Prepares to Buy Medidata

The French technology company Dassault Systemes is about to conclude a contract for the acquisition of Medidata Solutions, according to people close to the case.

The probable deal has already been reported by Bloomberg, who also published an article in April that 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. It also provides analysis tools to understand a considerable amount of information. Medical device companies also use it to track the progress of their clinical trials.

"Medidata has always been a very well managed company and a juggernaut in its space," said Bijan Salehizadeh, a medical technology investor at NaviMed Capital. "It's an A-plus asset."

The expected deal comes as the M & A market recovers for high-growth software companies. Last week, Google acquired the company's Looker Data Analysis for $ 2.6 billion. Salesforce announced Monday its biggest deal: the $ 15.3 billion purchase of Tableau Software.

Medidata, which competes with healthcare software developed by publishers such as IBM, Oracle and Veeva, was founded in 1999 and went public 10 years later. Revenues 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% over the last year. He earned an extra 6% after hours.

Dassault sells software to transportation, aerospace and life sciences companies to help them digitize their businesses. Its 3D design tools help companies design virtual products and enable digital simulation in product development. With Medidata, Dassault can add growth without sacrificing profitability, but also expand into the lucrative medical market.

"It's about diversifying their business," said Matthew Holt, managing director of New Mountain Capital's private equity firm. "They already understand the regulated markets, so the life sciences do not scare them."

– Ari Levy contributed to this report.