Veeva shares close lower on Thursday, company to acquire Crossix Solutions for $430 million

Veeva Systems (VEEV) said on Thursday that it had agreed to acquire Crossix Solutions in an all-cash deal estimated at $430 million.

Additionally, long term equity retention grants, valued at nearly $120 million, will be provided to certain employees of Crossix.

Shares of Veeva Systems Inc closed lower for the sixth time in the past thirteen trading sessions in New York on Thursday. The stock went down 0.43% ($0.67) to $154.63, after touching an intraday high at $159.50, or a price level not seen since September 6th ($161.29).

Shares of Veeva Systems Inc have risen 73.12% so far this year, following a 61.58% gain in 2018.

Crossix offers an analytics platform, which uses technology that connects health and non-health data for more than 300 million patients across the United States in order to facilitate greater marketing effectiveness.

Crossix is to continue functioning as an independent business unit under its current brand, headed by Crossix Chief Executive Asaf Evenhaim.

“Crossix has been the pioneer in patient data, privacy, and analytics,” Peter Gassner, Veeva’s founder and Chief Executive Officer, said in a statement.

“As we look toward the future of a more patient-centric healthcare system, Asaf and I are excited to join forces to help the industry deliver better patient outcomes,” Gassner added.

The acquisition is to be finalized in November.

Analyst stock price forecast and recommendation

According to CNN Money, the 17 analysts, offering 12-month forecasts regarding Veeva Systems Inc’s stock price, have a median target of $180.00, with a high estimate of $200.00 and a low estimate of $154.00. The median estimate represents a 16.41% upside compared to the closing price of $154.63 on September 26th.

The same media also reported that at least 9 out of 19 surveyed investment analysts had rated Veeva Systems Inc’s stock as “Buy”, while 8 – as “Hold”.