SAP has acquired West Pharmaceuticals, a leading provider of pharmacy technology, and will become a wholly owned subsidiary of the healthcare software company.
The acquisition, which was announced today, is expected to close in the first half of 2020.
SAP is also a majority shareholder in Valeant Pharmaceuticals.
The acquisition will create a world-class, global pharmacy technology company focused on expanding and enhancing the pharma delivery ecosystem.
The company will continue to build on the SAP expertise that has served the healthcare industry for decades, with significant acquisitions in recent years.”SAP continues to make tremendous progress in delivering healthcare to patients, and this acquisition will enable us to further expand and enhance our delivery capabilities,” CEO Bill Gates said.
West is currently one of the world’s leading pharmacy software companies, with more than 20 million users globally.
It’s been in business since 1982, and employs over 7,000 people in more than 60 countries.
It is one of several software companies to enter the pharmacy industry in recent decades, including CVS, Rite Aid, and CVS Caremark.
In addition to West, SAP acquired a minority interest in the medical device startup, HealthFirst, and acquired a patent for an electronic health record system for use in healthcare.
SAP also announced that it has acquired the business and technology arm of pharmacy giant AmerisourceBergen (ABB), which has a market capitalization of more than $3 billion.
The company is also looking to grow its business in a number of areas, including pharmaceuticals, healthcare, and financial services.
The transaction, which will also allow SAP to grow into healthcare, is a “transformational” move for the company, Gates said in a statement.
“This acquisition brings SAP one step closer to achieving our long-term vision of being the global leader in healthcare technology, with a strong focus on the delivery of high-quality, innovative solutions for the healthcare sector,” he added.
The company also said it would create new opportunities to accelerate innovation and drive business growth.
“This is an exciting time for SAP, as we enter a period of rapid change in the healthcare delivery landscape,” said Jefferies analyst Andrew Wilson in a research note.
“With this acquisition, we expect the company to be able to continue to grow in the pharmaceuticals space, as well as continue to expand and innovate in other areas.”
West is focused on improving the pharmacist experience.
Its proprietary, highly effective, mobile pharmacy technology will provide patients with the fastest and most personalized delivery experience possible, including a faster access to their prescriptions and a personalized, automated prescription.
The technology is already being used by pharmacies in many markets around the world, including in Australia, Australia, the U.K., New Zealand, Canada, Brazil, Japan, South Korea, India, Singapore, and the United Arab Emirates.
“Our pharmacy technology is one that is well suited to the challenges we are facing in delivering health care in the future,” CEO and cofounder Michael C. Johnson said in the company’s statement.
“We believe this acquisition is a significant step in our continued growth in this area, as it will enable SAP to create a robust pharmacy solution for the health care industry.”