Software maker Oracle Corp is set to buy drug data management software company Phase Forward
for about $685 million, aiming to bolster its health sciences business.

Oracle will pay Phase Forward $17.00 per share in cash, the companies said on Friday, a 30 percent premium over Thursday's closing price of $13.08. Phase Forward shares jumped 29 percent to $16.89 in premarket trade.

The deal is expected to close in mid-2010. Oracle said the combination of the companies' software will enable researchers, physicians, and clinical development professionals to contribute and share data more efficiently.

Phase Forward's data management software is used by companies including AstraZeneca and Boston Scientific Corp in clinical trials for drug development and patient care.

Oracle shares were down slightly in pre-market trade at $26.10 compared to Thursday' close at $26.20.

(Reporting by Ritsuko Ando; Editing by Lisa Von Ahn and Derek Caney)