Altaris to Acquire Simulations Plus in Cash Deal

Simulations Plus, a leading provider of model-informed and AI-enabled drug development software and services, has agreed to be acquired by healthcare-focused investment firm Altaris in an all-cash transaction that values the company at a significant premium to its recent trading levels.

The agreement marks a major development in the rapidly evolving life sciences technology sector, where companies are increasingly embracing artificial intelligence, cloud-based platforms, and integrated software solutions to accelerate drug discovery and development.

Under the terms of the definitive merger agreement, shareholders of Simulations Plus will receive $18.50 per share in cash. The offer represents a 26% premium to the company’s 60-day volume-weighted average share price as of June 15, 2026.

The transaction has been unanimously approved by the Simulations Plus Board of Directors and is expected to close during the fourth quarter of calendar year 2026, subject to shareholder approval, regulatory clearances, and other customary closing conditions.

Altaris, a private investment firm specializing exclusively in healthcare businesses, plans to combine Simulations Plus with Chemical Computing Group (CCG), one of its existing portfolio companies. CCG develops molecular modeling and computational chemistry software used by pharmaceutical, chemical, and materials science organizations worldwide. The combination is expected to create a broader technology platform serving customers across multiple stages of drug discovery and development.

Shawn O’Connor, Chief Executive Officer of Simulations Plus, said the life sciences industry is reaching a pivotal moment as software and services increasingly shift toward integrated, AI-driven ecosystems and subscription-based business models. He noted that the transaction delivers immediate value and certainty to shareholders while positioning the company to expand innovation and strengthen its offerings for customers.

Simulations Plus has built a strong reputation in the biopharmaceutical sector through its modeling and simulation technologies that help companies improve decision-making throughout the drug development process. Its software and consulting services are widely used to predict drug behavior, optimize clinical development strategies, and support regulatory submissions.

The acquisition will result in Simulations Plus becoming a privately held subsidiary of Altaris. Following completion of the transaction, the company’s common stock will no longer trade on the Nasdaq Stock Market. Despite the ownership change, the company’s headquarters are expected to remain in Research Triangle Park, North Carolina, a major hub for biotechnology and pharmaceutical innovation.

The transaction will be financed through a combination of committed equity and debt financing provided by Altaris and its affiliated funds. Importantly, the agreement is not subject to any financing contingency, providing additional certainty regarding deal completion.

As part of the transaction, Simulations Plus cofounder and board member Dr. Walter Woltosz has entered into a voting and support agreement with Altaris. Under the arrangement, he has committed to voting all shares beneficially owned by him in favor of the acquisition when shareholders consider the proposal.

The company also announced that it intends to release its third-quarter fiscal 2026 financial results on July 9, 2026. However, due to the pending acquisition, Simulations Plus does not plan to conduct earnings conference calls until the transaction process is complete.

Financial advisory services for Simulations Plus are being provided by Morgan Stanley, while legal counsel is being handled by Procopio Cory Hargreaves & Savitch. Altaris is being advised by Truist Securities and J.P. Morgan Securities, with legal support from Bass, Berry & Sims and Kirkland & Ellis.

The acquisition reflects ongoing consolidation within healthcare technology and drug development software markets as investors seek to build comprehensive platforms capable of supporting the growing adoption of AI and advanced computational tools across the pharmaceutical industry.