BD (Becton, Dickinson and Company) (NYSE:BDX) has partnered with the private equity firm Frazier Healthcare Partners to acquire Parata Systems, a provider of pharmacy automation solutions. The purchase price of the acquisition is $1.525 billion.

Founded in 2006, Parata Systems offers a range of products and services, including medication adherence packaging technology and perpetual inventory management.

The Durham, North Carolina–based company has positioned its automation technology and software as a means to enable pharmacists to focus more on clinical work and patient interactions.

BD (Franklin Lakes, New Jersey) says the acquisition of Parata will complement its existing medication management portfolio. In particular, Parata will give its new parent access to the $600 million pharmacy automation market segment.

“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,” said Tom Polen, BD CEO, in a statement. “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. We look forward to welcoming the talented Parata team to BD.”

“BD is a great home for our company, innovative solutions and technology, and Parata’s team members,” said Rob Kill, CEO of Parata Systems, in a news release.

BD expects the transaction to close by March 31, 2023, the close of the first half of its fiscal year.

The transaction is subject to customary closing conditions.

Parata generated $220 million in the 12-month period ending on March 31, 2022.

BDX shares ticked up 2.13% to $257.65 in late-morning trading.