Becton, Dickinson and Company (BD) has agreed to acquire Parata Systems, a provider of pharmacy automation solutions, in an all-cash transaction valued at $1.525bn.

The US-based medical technology company has signed the transaction agreement with Frazier Healthcare Partners, a private equity firm that owns Parata Systems.

The acquisition is expected to complete by the end of the first half of the fiscal year 2023, subject to certain customary closing conditions, including receipt of regulatory approvals.

BD said that the transaction is in line with its capital allocation strategy, including its financial policy framework to manage capital deployment.

BD chairman, chief executive officer and president Tom Polen said: “Parata expands BD’s solutions to a new area of the high-growth pharmacy automation space and is a prime example of BD executing our disciplined M&A strategy.

“Parata has a highly attractive financial profile and compelling value proposition that meets all of our rigorous investment criteria on growth, profitability and returns.

“With the addition of Parata, BD further advances our 2025 growth strategy around smart, connected care and enabling new care settings.”

Parata is engaged in providing pharmacy technology solutions to reduce costs, enhance patient safety and improve the patient experience.

It offers a comprehensive pharmacy automation portfolio with medication adherence packaging, high-speed robotic dispensing technologies and pharmacy workflow solutions.

The company has generated around $220m in revenue for the last 12 months ended 31 March 2022.

With the acquisition of Parata, BD is enabled to access a new $600m pharmacy automation market segment.

The company will expand its medication management solutions with new technologies, including acute care health systems, retail pharmacies, long-term care and home settings.

Parata chief executive officer Rob Kill said: “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.

“The combination with BD will further advance our purpose of powering pharmacies to help people lead healthier lives.”