By Aisha Al-Muslim

Pharmaceuticals firm Roche Holding AG has agreed to buy the shares it doesn't already own of Flatiron Health Inc., an oncology software company, for $1.9 billion, the companies said Thursday.

Switzerland-based Roche said the deal is part of an effort to accelerate its development and delivery of medicines for cancer patients. Roche already owns 12.6% of New York City-based Flatiron Health, which was launched in 2012.

The deal is expected to close in the first half of 2018.

Flatiron said it will continue to operate as a separate entity as part of the Roche Group.

"This important milestone will allow us to increase our investments in our provider-facing technology and services platform, as well as our evidence-generation platform, which will remain available to the entire health-care industry," said Nat Turner, Flatiron Health cofounder and chief executive, in prepared remarks.

Currently, Flatiron works with more than 265 community cancer clinics, six academic research centers and several therapeutic-oncology companies.

Soon after its launch, Flatiron started working with Roche as a client, Mr. Turner said in a letter posted to Flatiron's website. Roche led a Series C financing round for the company in late 2015.

Flatiron was also backed by Google Ventures and First Round Capital among others.

(END) Dow Jones Newswires

February 15, 2018 17:28 ET (22:28 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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