Simulations Plus Agrees to $375 Million Acquisition by Altaris, Signaling New Chapter in AI-Driven Drug Development
Simulations Plus, Inc., a recognized leader in model-informed drug development and artificial intelligence-enabled pharmaceutical research solutions, has entered into a definitive agreement to be acquired by healthcare-focused investment firm Altaris, LLC. The all-cash transaction marks a significant milestone for the company and reflects the growing importance of advanced software, predictive modeling, and AI technologies in modern drug development.
The acquisition will position Simulations Plus to expand its capabilities and strengthen its role in helping biopharmaceutical companies accelerate research, optimize clinical development, and improve decision-making across the drug discovery and development process. Following completion of the transaction, Altaris plans to combine Simulations Plus with Chemical Computing Group (CCG), another company within its healthcare investment portfolio that specializes in molecular modeling and computational chemistry software.
The proposed combination is expected to create a comprehensive technology platform spanning molecular design, simulation, predictive analytics, and AI-powered drug development tools, serving customers across the pharmaceutical, biotechnology, chemical, and materials science industries.
Transaction Values Simulations Plus at Attractive Premium
Under the terms of the merger agreement, shareholders of Simulations Plus will receive $18.50 in cash for each share of common stock they own. The offer represents a premium of approximately 26% compared with the company’s 60-day volume-weighted average share price as of June 15, 2026.
The acquisition provides shareholders with immediate cash value while reflecting confidence in the company’s long-term growth potential and strategic importance within the life sciences technology landscape.
Over the years, Simulations Plus has established itself as a leading provider of software and consulting services that support pharmaceutical research and development. Its technologies help organizations predict drug behavior, assess safety profiles, optimize dosing strategies, and improve the efficiency of clinical development programs. By integrating advanced modeling techniques with artificial intelligence, the company has played a growing role in helping life sciences organizations reduce development timelines and improve the probability of success for new therapies.
According to company leadership, the transaction comes at a pivotal moment for the pharmaceutical software sector, where customers increasingly seek integrated digital platforms capable of delivering predictive insights throughout the entire drug development lifecycle.
Industry Transformation Driving Strategic Combination
Shawn O’Connor, Chief Executive Officer of Simulations Plus, emphasized that the life sciences industry is undergoing rapid transformation driven by advances in artificial intelligence, cloud computing, and data-driven research methodologies.
He noted that pharmaceutical and biotechnology companies are increasingly looking for comprehensive platforms that combine software, services, and predictive analytics to support decision-making across discovery, preclinical development, clinical trials, and regulatory submissions.
As organizations continue to adopt AI-powered technologies, business models are also shifting toward subscription-based software platforms and integrated service offerings. The acquisition by Altaris is expected to provide Simulations Plus with additional resources and strategic flexibility to accelerate innovation and expand its technology portfolio.
Company leadership believes the combination with Chemical Computing Group will further enhance its ability to deliver end-to-end computational solutions that support customers from the earliest stages of molecular design through late-stage clinical development.
Planned Combination with Chemical Computing Group
A central element of the transaction is Altaris’ intention to combine Simulations Plus with Chemical Computing Group after the acquisition closes.
Chemical Computing Group is known for its advanced molecular modeling, computational chemistry, and molecular design software. Its technologies are widely used by pharmaceutical researchers and scientists working in chemistry and materials science.
The planned integration would bring together complementary expertise from both organizations.
Simulations Plus contributes strengths in:
- Pharmacokinetic and pharmacodynamic modeling
- Quantitative systems pharmacology
- Physiologically based pharmacokinetic modeling
- Clinical trial simulation
- AI-enabled drug development tools
- Regulatory science consulting
Meanwhile, Chemical Computing Group brings expertise in:
- Molecular modeling
- Computational chemistry
- Drug discovery software
- Structure-based drug design
- Materials science applications
Together, the companies could create a broader technology ecosystem designed to support drug developers throughout the entire innovation process. Such a platform would allow researchers to move seamlessly from molecular discovery and compound optimization to clinical development and regulatory planning.
The merger aligns with broader industry trends as pharmaceutical companies increasingly seek integrated software environments that eliminate data silos and streamline research workflows.
Board Approval and Shareholder Support
The proposed transaction has already received unanimous approval from the Simulations Plus Board of Directors, demonstrating strong confidence among company leadership regarding the strategic merits of the deal.
The transaction remains subject to several customary closing conditions, including approval by Simulations Plus shareholders and the receipt of required regulatory clearances and other standard approvals.
A notable development accompanying the merger announcement is the support of Simulations Plus cofounder and director Dr. Walter Woltosz. In connection with the merger agreement, Dr. Woltosz has entered into a voting and support agreement with Altaris.
Under this agreement, he has committed to vote all shares beneficially owned by him in favor of the transaction during the special shareholder meeting that will be held to approve the merger.
His support provides additional momentum for the transaction and highlights confidence from one of the company’s founding leaders in the strategic direction being pursued.
Financing Structure and Expected Timeline
The acquisition is structured as an all-cash transaction financed through a combination of committed equity investments and debt financing arranged by funds affiliated with Altaris.
Importantly, the merger agreement does not include a financing contingency, meaning completion of the transaction is not dependent on Altaris securing financing after signing. This structure provides greater certainty regarding the completion of the acquisition.
The companies currently expect the transaction to close during the fourth quarter of calendar year 2026, assuming all required approvals and conditions are satisfied within the anticipated timeframe.
Until the deal closes, Simulations Plus will continue operating as an independent publicly traded company while working through the regulatory and shareholder approval process.
Headquarters to Remain in North Carolina
Following completion of the acquisition, Simulations Plus is expected to maintain its headquarters in Research Triangle Park, North Carolina, one of the leading life sciences and technology hubs in the United States.
The decision to retain the company’s headquarters reflects the importance of the region’s talent base, research institutions, and biotechnology ecosystem.
After closing, Simulations Plus will become a privately held subsidiary of Altaris. As a result, the company’s shares will no longer be listed or traded on the Nasdaq Stock Market.
The transition to private ownership may provide greater flexibility for long-term investments and strategic initiatives that can be pursued outside the pressures of public market reporting requirements.
Upcoming Financial Results
Despite the pending acquisition, Simulations Plus plans to release its financial results for the third quarter of fiscal year 2026 on July 9, 2026, through a press release.
However, because of the ongoing transaction process, the company has indicated that it does not plan to conduct earnings conference calls while the merger remains pending. This approach is common during acquisition periods, as companies often limit public discussions while awaiting completion of significant corporate transactions.
Advisors Supporting the Deal
Several prominent financial and legal advisors are assisting the parties involved in the transaction.
Morgan Stanley & Co. LLC is serving as exclusive financial advisor to Simulations Plus, while Procopio Cory Hargreaves & Savitch LLP is acting as legal counsel to the company.
On the Altaris side, Truist Securities and J.P. Morgan Securities LLC are serving as financial advisors. Legal counsel is being provided by Bass, Berry & Sims PLC and Kirkland & Ellis LLP.
A Strategic Move in the Evolving Drug Development Technology Market
The acquisition of Simulations Plus by Altaris reflects growing investor interest in companies that provide software, modeling, and AI-enabled technologies for the pharmaceutical industry. As drug development becomes increasingly data-intensive and complex, demand continues to rise for platforms capable of integrating computational modeling, predictive analytics, and artificial intelligence into a unified workflow.
By combining Simulations Plus with Chemical Computing Group, Altaris aims to create a stronger technology platform capable of supporting customers across every stage of drug discovery and development. The transaction not only delivers immediate value to shareholders but also positions the combined organization to capitalize on the accelerating digital transformation of the life sciences sector.
If completed as expected in late 2026, the deal will mark the beginning of a new phase for Simulations Plus, expanding its reach and strengthening its ability to help pharmaceutical innovators bring new therapies to patients more efficiently and effectively.
About Simulations Plus, Inc.
Simulations Plus is a global leader in model-informed and AI-accelerated drug development. We create value for our clients by accelerating the discovery, development, and commercialization of pharmaceuticals and other products through innovative science-based software and consulting solutions. For more information, visit www.simulations-plus.com.
About Altaris
Altaris is an investment firm with an exclusive focus on acquiring and building companies in the healthcare industry. Since its inception in 2003, Altaris has invested in more than 50 companies across a range of healthcare subsectors, with a consistent goal of delivering value to the healthcare system and generating attractive financial returns for investors. Altaris is headquartered in New York City and manages $9+ billion of equity capital. For more information, please visit www.altariscap.com.
About Chemical Computing Group
Chemical Computing Group (CCG) is a global leader in computer-aided molecular design software for pharmaceutical, biotechnology, crop science and academic organizations worldwide. Its main software platform, the Molecular Operating Environment (MOE), is used by computational chemists, medicinal chemists, and biologists throughout the world. CCG has a strong reputation for collaborative scientific support, providing organizations with expert collaboration across North America, Europe, and Asia. Founded in 1994, CCG is headquartered in Montreal, Canada.
