Altaris Takes Simulations Plus Private in $375M Deal

Simulations Plus agreed to be acquired by affiliates of Altaris in an all-cash transaction valued at roughly $375 million, the companies said. The deal is expected to close in the fourth quarter of 2026.

Simulations Plus builds software and services for drug discovery and development. Pharmaceutical companies use its models to simulate how compounds behave, cutting lab time and animal testing. Altaris is a healthcare-focused private equity firm with a history of investing in drug development tools and data services.

The acquisition takes Simulations Plus private. Public market pressure on quarterly earnings will no longer frame the company's investment decisions. That could allow longer development cycles for its modeling platforms. The cost savings from a private structure remain unquantified without a proxy statement.

Altaris did not disclose a per-share price. Shareholders must still approve the transaction. Customary regulatory reviews will apply. The slim deal premium relative to recent trading levels suggests limited competing interest. The buyer may have secured the deal at a negotiated price below what a public auction would demand.

For the niche of drug simulation software, private equity sees recurring revenue from sticky pharma clients. Similar acquisitions in the life-sciences tools space have closed at 4-6x revenue. The multiple here will only emerge when the definitive terms are filed.

The deal removes a small-cap public equity from the market. Simulations Plus had traded with limited liquidity, making it a candidate for take-private. Altaris gains a platform with entrenched relationships at top-20 pharma companies. The question for remaining public peers is whether the premium signals a floor for valuations in the space or a one-off price for a specific asset.