Medtech firm BD dives into growing pharmacy automation market with $1.5B acquisition

Hungry for a slice of the budding pharmacy automation market, medical technology firm Becton, Dickinson and Company announced today plans to acquire Parata Systems for more than $1.5 billion.

The all-cash deal is expected to close during the first half of BD’s 2023 fiscal year, which ends Sept. 30, according to the companies. Parata is a portfolio company of healthcare private equity firm Frazier Healthcare Partners.

“Parata has a highly attractive financial profile and compelling value proposition that meets all of our rigorous investment criteria on growth, profitability and returns,” Tom Polen, chairman, CEO and president of BD, said in a statement. “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 offers a range of automation products for pharmacies, such as high-speed robotic dispensers, workflow solutions, inventory management software and adherence packaging tools.

The company brought in $220 million in revenue during the most recent 12-month period, according to the deal announcement. The companies said they expect the purchase 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, a 75,000-person global firm with products spanning healthcare and laboratory sciences, said the acquisition will be complementary to its current medication management offerings made for acute health system, retail pharmacy, long-term care and home setting customers.

Citing large-scale trends such as clinician shortages and increasing centralization of pharmacy services, the companies said the deal will give BD access to a $600 million pharmacy automation market segment set to grow 10% per year, reaching $1.5 billion in the U.S. over the course of a decade.

“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,” Rob Kill, CEO of Parata, said in a statement. “The combination with BD will further advance our purpose of powering pharmacies to help people lead healthier lives.”

Completion of the deal is subject to customary closing conditions, including signoffs from regulators, according to the announcement.