Piramal Enterprises Ltd’s US-based database and consulting services subsidiary Decision Resources Group (DRG) has acquired Adaptive Software LLC and its unit AdaptiveRx for up to $24.5 million.
The acquisition of Adaptive Software, a software solutions provider for health plans and PBMs (pharmacy benefit managers), offers DRG an entry into the healthcare payer market, Piramal Enterprises said in a filing to the stock exchanges.
Adaptive Software and AdaptiveRx are together called Adaptive.
Piramal Enterprises has already paid $7.4 million for the purchase. It will pay $11.1 million more when Adaptive meets certain post-closing requirements, which must be satisfied within six months of the closing date, which is February 29.
Further, Adaptive is eligible to receive additional payments of up to $6 million in aggregate based on the future performance of the Adaptive business in calendar years 2016 and 2017, Piramal said.
"If earned, a payment attributable to Adaptive’s performance in each such calendar year will be paid within approximately six months following the end of the calendar year,” it added.
DRG’s acquisition of Adaptive is an arms-length transaction between unrelated parties. Neither Piramal Enterprises nor its Promoter group has any interest in Adaptive, Piramal said. No governmental or regulatory approvals are required for this transaction, it added.
Adaptive Software, which was founded in 2010, had revenues of $3.2 million in fiscal year 2015.
Piramal Enterprises had acquired DRG for Rs 3,400 crore ($635 million) in an all-cash deal in 2012. DRG offers data, analytics and services to the life sciences, payer and financial services industries across North America, Europe and Asia.
In December 2012, DRG had acquired UK’s integrated market access service provider Abacus International for an undisclosed amount.
While Piramal Enterprises has been acquiring overseas firms, it has also been selling some. Early in January, its Canadian subsidiary sold cartilage repair product–BST-CarGel—to Smith & Nephew Plc.