By midday, shares had popped 6.8% to $24.78. Trading volume of 1.7 million shares was more than double its three-month daily average.
IMS Health will purchase Cegedim's information solutions and CRM system for $520 million in cash. Those segments generated revenue of $573 million over 2013.
IMS Health expects to finance this acquisition through a mix of cash on hand and existing credit facilities, with no material impact on its leverage ratio.
"Cegedim's complementary offerings will accelerate the build-out of our strategic roadmap in information and technology services," said IMS Health CEO Ari Bousbib in a statement.
The deal is expected to close early 2015 and is anticipated to immediately add to IMS' adjusted profit upon completion.