Merck & Co has agreed to acquire French animal health company Antelliq for a cash payment of about €2.1 billion. Upon completion of the deal, expected in the second quarter of 2019, Antelliq will be a wholly owned and separately operated subsidiary within the US drugmaker’s Animal Health Division.

Vitré, Brittany-based Antelliq is majority controlled by funds advised by private equity group BC Partners, with significant minority interests held by PSP Investments and Pictet. It posted sales of €360 million in the year ending Sept. 30 2018.

The French firm designs and manufactures digital animal identification, traceability and monitoring technologies for livestock and pets, which it says is the fastest growing part of the animal health industry. The digital products are said to provide real-time actionable information to help farmers and veterinarians improve livestock management and health outcomes as well as assisting owners in enhancing their pets’ quality of life.

“The animal health industry is rapidly evolving with revolutionary digital solutions to manage the health and well-being of livestock and companion animals,” said Rick DeLuca, president of Merck Animal Health. “Animal identification, animal monitoring and smart data management are critical components of this transformative technology. This acquisition represents yet another way that we will ensure our place as a leader in animal health, with a substantial and sustainable position, including the most innovative, technological solutions to serve our customers.”