DGAP-News

CompuGroup Medical strengthens US business with one of the largest acquisitions in company history

DGAP-News: CompuGroup Medical SE & Co. KGaA / Key word(s): Acquisition CompuGroup Medical strengthens US business with one of the largest acquisitions in company history 23.11.2020 / 08:10 The issuer is solely responsible for the content of this announcement.

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• CompuGroup Medical (CGM) is growing its US business by acquiring eMDs, Inc. (eMDs), a leading provider of healthcare IT with a focus on doctors' practices in the US, reaching an attractive size in the biggest healthcare market worldwide
• CGM is building an attractive platform for future growth through complementary product portfolios and the ability to provide comprehensive solutions for doctors' practices
• Both CGM and eMDs customers will benefit from the transaction
• CGM has planned additional significant investments to strengthen synergetic growth

Koblenz. CompuGroup Holding USA, Inc., a 100 % subsidiary of CompuGroup Medical SE & Co. KGaA is acquiring 100 % of eMDs, Inc., based in Austin, TX/USA. Today, CompuGroup Holding USA and MDeverywhere Midco, Inc., USA, the sole indirect shareholder of eMDs, Inc., USA (jointly "eMDs"), have signed an agreement regarding the acquisition of 100 % of the shares in eMDs. The transaction is structured as a reverse triangular merger under U.S. law. eMDs' key products are Ambulatory Information Systems and outsourcing services for medical accounting. With this acquisition, the US subsidiary of CGM significantly broadens its position and will become the top 4 provider in the market for Ambulatory Information Systems in the US. The consideration to be paid to the current shareholders of eMDs is based on an enterprise value of USD 240 million (equal to approx. EUR 203 million), which will be adjusted inter alia for amounts of cash, financial debt and net working capital (compared to a reference amount) as of the closing date. In the fiscal year 2019/2020 year (ended 2020/03/31), eMDs had revenues of approximately EUR 81 million and an adjusted EBITDA of approximately EUR 12 million with more than 60.000 healthcare providers.