Franklin Lakes medical tech company BD (Becton, Dickinson and Co.) announced June 6 it entered a definitive agreement to acquire Parata Systems — a pharmacy automation solutions provider based in Durham, N.C. — for $1.525 billion.
The deal is expected to close by the end of the first half of BD’s 2023 fiscal year. Subject to the satisfaction of customary closing conditions, it expands the company’s “solutions to a new area of the high-growth pharmacy automation space and is a prime example of BD executing our disciplined M&A strategy,” Tom Polen, chairman, CEO and president of BD, said in a statement.
Current clinician shortages, wage inflation, pharmacy service consolidation and increased clinical demands on pharmacists all factor into the growing demand for automated solutions such as Parata’s offerings, according to BD. These services — such as pouch and blister medication adherence packaging, high-speed automated robotic dispensing technologies and pharmacy workflow solutions, per Parata’s website — allow pharmacies to reduce costs, enhance patient safety and improve the patient experience.
According to BD, the $600 million pharmacy automation market is expected to grow approximately 10% annually to $1.5 billion in the U.S. alone over 10 years.
“Parata has a highly attractive financial profile and compelling value proposition that meets all of our rigorous investment criteria on growth, profitability and returns,” Polen added. “With the addition of Parata, BD further advances our 2025 growth strategy around smart, connected care and enabling new care settings. We look forward to welcoming the talented Parata team to BD.”
Parata’s revenue for the last 12-month period, ended March 31, 2022, was approximately $220 million, according to the acquisition announcement. The transaction is expected to be immediately accretive to revenue growth, adjusted operating margin and adjusted earnings per share, and exceed BD’s 2025 sales growth and margin targets.
“BD and Parata share a common purpose with closely aligned cultures. We are very proud of the company the team has built at Parata over the past 21 years and feel BD is a great home for our company, innovative solutions and technology, and Parata’s team members,” Parata CEO Rob Kill said. “The combination with BD will further advance our purpose of powering pharmacies to help people lead healthier lives.”
The acquisition news comes on the heels of several innovation announcements, including the unveiling of a first-of-its-kind cell-sorting technology, as well as the launch of a fully automated, high-throughput infectious disease molecular diagnostics platform.