Why IMS Health Holdings (IMS) Stock Is Up Today

NEW YORK (TheStreet) -- IMS Health Holdings (IMS) stock is gaining Wednesday after the company announced it would buy certain segments from healthcare software developer Cegedim. 

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. 

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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. 

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