Medidata Solutions Inc. (MDSO) - Get Report shares traded lower Wednesday after it agreed a takeover offer from France's Dassault Systemes SE at a discount to its current market value.

Dassault said it would pay $92.25 for each Medidata share in a deal that values the New York-based group at $5.8 billion. Shares in the life sciences software group closed at $94.75 each last night and have risen more than 40% since the start of the year. the Dassault offer has been approved by both company's boards and is expected to close before the end of the year.

"Today marks a significant milestone for the Life Sciences industry and the value of the virtual world to address the complexity of developing personalized medicine and patient-centric experiences," said Dassault CEO Bernard Charles. "Multidiscipline scientific innovation and industrial performance call for a platform approach connecting the dots between people, ideas and data."

"Medidata's recent expansion into real world evidence and analytics coupled with the power of modeling and simulation demonstrates how the virtual world will catalyze the next generation of patient-inclusive therapeutics.," he added. "We are now well positioned to be the enabler of the Life Sciences industry transformation, illustrating our company's purpose of harmonizing product, nature and life."

Medidata shares were marked 3.5% lower following news of the deal tochange hands at $91.40 each, but had traded as high as $100 in extended dealing last night amid speculation that the France-based group was prepared to finalize a deal.

Medidata, which has sales of around $636 million last year, develops cloud-based software and analytical tools for the healthcare industry.

In our view the deal price is fair, and we believe that the news is a relief to shareholders of Medidata, given recent top-line growth challenges of the business and an increasingly competitive market," said SVBLeerink analyst David Larsen, who noted the Dassault offer price is around 23% higher than where Medidata was trading prior to public commentary on the deal. "Given the premium of the transaction, and the complementary fit of the two companies, we believe that Medidata leadership is pleased with the deal price and rationale."