Simulations Plus Agrees to $375 Million Acquisition by Altaris Affiliates at $18.50 Per Share

The Quick Take

• Simulations Plus (SLP) announced a $375 million acquisition agreement with Altaris Capital Partners affiliates at $18.50 per share in a take-private transaction.
• The deal values SLP at a premium to its recent market price, typical of private equity take-private acquisitions that reward public shareholders with a buyout premium.
• Simulations Plus provides drug simulation and modeling software used by pharmaceutical companies in regulatory submissions and clinical trial design.

Simulations Plus (NASDAQ: SLP) announced an acquisition agreement with affiliates of Altaris Capital Partners at $18.50 per share, implying a total transaction value of approximately $375 million. The agreement represents a take-private transaction in which Altaris, a healthcare-focused private equity firm, will acquire 100% of Simulations Plus's outstanding shares, delisting the company from the Nasdaq. Simulations Plus develops biosimulation and pharmacokinetics modeling software used by pharmaceutical companies, regulatory agencies, and academic researchers in drug development workflows, representing a specialized niche in life sciences software with high switching costs and recurring revenue characteristics.

The strategic rationale for Altaris is consistent with private equity's increased focus on life sciences software assets with defensible recurring revenue streams. Simulations Plus's software is embedded in pharmaceutical development workflows where FDA regulatory submissions depend on the output, creating a highly sticky customer base. At $375 million and $18.50 per share, the Altaris offer implies a multiple consistent with mid-range SaaS and life sciences software comps, though likely below peak multiples for pharma software assets that traded at elevated levels in 2021-2022. Certara (CERT), a competitor in drug simulation software, provides a publicly traded valuation benchmark that investors will use to assess whether $375 million is a fair price for SLP's current revenue and growth profile.

The key forward signal is shareholder vote outcome and any competing bid that might emerge in the go-shop period following the agreement announcement, as the $18.50 per share price may attract counter-offers if strategic acquirers see synergy value in SLP's customer relationships. Watch for Certara's (CERT) stock reaction, which will trade as a sector peer read on life sciences software valuation. The macro variable is pharmaceutical R&D spending: if major pharma companies sustain or grow drug discovery investment, demand for biosimulation software grows proportionally, supporting the return thesis Altaris is using to justify the $375 million outlay.

Synthesized from 2 sources.