Investing.com -- Veeva Systems shares climbed 10.6% in premarket trading Friday to $172.70 following the announcement that the life sciences cloud provider will join the S&P 500 index next week.

S&P Dow Jones Indices said Veeva will replace Coterra Energy in the benchmark index effective Thursday, May 7. The change comes as Coterra is being acquired by shale producer Devon Energy in a deal expected to close soon.

Companies added to the S&P 500 typically see their stocks rise as index-tracking funds buy shares to match the index composition.

The Pleasanton, California-based company has around 163.3 million shares outstanding, giving it a market capitalization of approximately $25 billion.

Before Friday's premarket gains, Veeva shares had fallen 30% year to date.