India's Piramal Healthcare said on Wednesday that it has acquired the U. S.-based firm Decision Resources Group in a deal valued at about $635 million or Rs. 3,400 crore.

The acquisition that will allow the company to enter the healthcare information management business, will be funded by an equal mix of debt and equity. The Indian company will acquire 100 per cent stake in DRG under the deal that is expected to close by June 30, 2012, according to Piramal Healthcare chairman Ajay Piramal.

DRG focuses on providing high quality databases and consulting services to the international healthcare firms. It mainly offers web-enabled information using proprietary database to international healthcare companies. teh companies use these databases in their research and development initiatives.

DRG is growing at an impressive 20 per cent per annum and it counts 48 out of the top 50 pharmaceutical firms among its clients. It employs about 300 analysts and it is expected to generate revenues of $160 million in 2012.

"This is a niche business that has stable revenues, low capex but high cash flows," Mr. Piramal said.

The global healthcare industry is facing several challenges including rising research costs, lower drug approval rates, mounting regulatory pressures and increasingly complex reimbursement models. The need for speciality information is critical and the demand is growing," said Mr. Piramal.

The existing head team of the company will be retained and it will be headquartered in Burlington, Massachusetts.