DGAP-News

CompuGroup Medical successfully completes acquisition of eMDs in the USA

DGAP-News: CompuGroup Medical SE & Co. KGaA / Key word(s): Acquisition CompuGroup Medical successfully completes acquisition of eMDs in the USA 21.12.2020 / 19:16 The issuer is solely responsible for the content of this announcement.

• Transaction completed after regulatory approvals
• CompuGroup Medical is now one of the leading providers of doctor information systems in the US market
• Product portfolios complement one another
• CGM's customer base and sales network continue to grow
• Investments planned in accelerated growth

Koblenz. CompuGroup Medical SE & Co. KGaA (CGM) is strengthening its international market position and rising to belong to the leading providers of Ambulatory Information Systems in the USA, with the acquisition of eMDs, an Austin, Texas based corporation. CompuGroup Holding USA, Inc., a 100 % subsidiary of CompuGroup Medical SE & Co. KGaA, successfully completed the reverse triangular merger under US law, making this growth opportunity possible. During the course of the closing, all of the company shares will be included in CGM's financial statements as of December 31, 2020.

The main products of eMDs are Ambulatory Information Systems and Revenue Cycle Management.

The acquisition price is around USD 240 million (EUR 203 million). The acquisition price will be financed from cash, current cash flow, and a temporary drawdown of the revolving multi-year loans in the low double-digit million-euro range. In the 2019/2020 fiscal year (ended on March 31, 2020), with more than 60,000 service providers, eMDs generated revenues of around EUR 81 million with an adjusted EBITDA of around EUR 12 million. eMDs currently employs around 1400 staff.

The new, strengthened CGM US company is intended to benefit from current growth in the health IT market in an accelerated manner and simultaneously make the dynamics of this sector in the USA accessible more quickly to all divisions of CompuGroup Medical. For this purpose, investments are particularly planned in the areas of electronic data interchange (EDI) and product development, which are already intended to be implemented in the coming months.