Why Shares in Simulation Plus Soared Today
Key Points
Shares are trading slightly below the acquisition price, reflecting low expectations of a bidding war.
Altaris plans to combine the AI -assisted software and services business with its existing Chemical Computing Group.
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Shares in Simulations Plus (NASDAQ: SLP) were higher by 11.65% at 11:45 a.m today as the market digested the news of a definitive agreement to be acquired by investment company Altaris for $18.50 a share, "representing a premium of 26% to Simulations Plus' 60-day volume-weighted average price as of June 15, 2026," according to the press release.
Why Simulation Plus shares trade at a small discount
At the time of writing, the shares trade at around $18.20, representing a single-digit percentage discount to the agreed acquisition price. This reflects the intended transaction date of the fourth quarter of this year, and the perception that there won't be a bidding war for the company.
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Indeed, the press release noted that the all-cash transaction was unanimously approved by Simulations Plus' board of directors, subject to customary provisions, including shareholder and regulatory approvals.
Where next for Simulations Plus
The profitable company offers software and services that help drug developers use artificial intelligence (AI) to model and simulate how the body reacts to compounds they are developing. As such, it can accelerate drug development, reduce research & development costs, and improve progress through clinical trials and commercialization. Altaris intends to combine Simulations Plus with its existing modeling and drug discovery software company, Chemical Computing Group (CCG).
Based on the price action following the announcement, it appears the market expects the deal to proceed without major disruption.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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