Netflix can sustain its lofty valuation only if global subscriber growth can support increasing content spending and debt.Technologyread more
The company blamed its Q2 content slate and price increases for the subscriber miss.Technologyread more
IBM's year-over-year revenue has now declined for four quarters in a row. Impact from Red Hat is not yet factored into the company's guidance.Technologyread more
The House voted to table a resolution to start impeachment proceedings against President Donald Trump introduced by Rep. Al Green.Politicsread more
See which stocks are posting big moves after the bell on July 17.Market Insiderread more
"It's clearly doing more harm than good," the "Mad Money" host says. Instead Facebook should buy Square for $70 billion and expand the payments network worldwide.Mad Money with Jim Cramerread more
Silicon Valley workers say they gravitate toward Yang, who is running for president as a Democrat, because of his approach to research and understanding of tech's moral...Technologyread more
Prosecutors in Masschusetts have dropped a criminal case against actor Kevin Spacey, who had been accused of groping an 18-year-old man.Entertainmentread more
"The passport contains numerous ingress and egress stamps, including stamps that reflect use of the passport to enter France, Spain, the United Kingdom, and Saudi Arabia in...Politicsread more
Loup Ventures founder Gene Munster told CNBC's "Fast Money" on Wednesday that Netflix's disappointing second quarter results are a turning point for the company, saying the...Technologyread more
Corporate earnings forecasts for the second quarter were lowered so much that companies are easily beating them.Market Insiderread more
Dassault said it was offering $92.25 per share for Medidata, a slight discount to Medidata Solutions' closing price of $94.75 on June 11.
"It's a logical evolution of the scope of what we do," Bernard Charles, chairman and CEO of Dassault Systemes, told CNBC's "Street Signs Europe" on Wednesday.
"Life science is going to go through an accelerated digitization of its own processes, basically. That's the motivation for Dassault Systemes to buy Medidata Solutions," Charles said.
Medidata's 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.
"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. "It's an A-plus asset."
The 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 such as IBM, Oracle and Veeva, was founded in 1999 and went public 10 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% after hours on the deal news.
Dassault sells software to transportation, aerospace and life sciences companies to help them digitize their businesses. Its 3D design tools help businesses with virtual product designs and enable digital simulation in product development. With Medidata, Dassault can add growth without sacrificing profitability while also expanding in the lucrative medical market.
Shares of Dassault Systemes slipped over 1% during mid-morning trade.
"It's about the diversification of their business," said Matthew Holt, managing director at private equity firm New Mountain Capital. "They understand regulated markets already, so life sciences wouldn't spook them."
— Ari Levy contributed to this report.