Swiss drugmaker Roche has agreed to acquire all of Flatiron Health, a privately held healthcare technology and services company headquartered in New York City, in which it currently holds a 12.6% stake. The transaction is expected to close in the first half of this year, subject to customary closing conditions.

The US company is a provider of oncology-specific electronic health record (EHR) software, as well as curation and development of “real-world” evidence for cancer research to companies and institutions engaged in healthcare. With a network of community oncology practices and academic medical centers across the US, Flatiron works to develop new approaches using the evidence gleaned in regulatory decision-making, including the design and validation of novel endpoints.

Under the terms of the agreement, Roche will make a payment of $1.9 billion to Flatiron Health on a fully diluted basis, subject to certain adjustments. The plan is for the US firm to continue its current business model, network of partnerships and overall objectives. The integrity of segregated patient protected health information will be preserved, as will dedicated sales and marketing, provider-facing and life science business activities, the Swiss drugmaker said.

Daniel O’Day, CEO of Roche Pharmaceuticals, said the acquisition is “an important step in our personalized healthcare strategy for Roche, as we believe that regulatory-grade real-world evidence is a key ingredient to accelerate the development of, and access to new cancer treatments.”