PRESS RELEASE : 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 
 
2020-12-21 / 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. 
 
"With eMDs, we are taking our US business to a new dimension. Know-how, 
products and target markets excellently complement one another," says Frank 
Gotthardt, founder and CEO of CompuGroup Medical SE & Co. KGaA. The Group, 
which is domiciled in Germany, is one of the world's leading providers of 
eHealth solutions. "We are also expanding our sales network with another 100 
partners through the acquisition. We are now even better and more broadly 
positioned, in order to take advantage of the current growth trend in the US 
market for health IT, for the benefit of patients and health professionals." 
 
Benedikt Brückle, Senior Vice President Northern America of CompuGroup 
Medical SE & Co. KGaA, "I am looking forward to working with Derek Pickell 
and his team. We have consistently focused our company on growth and scale 
over the past years. With the acquisitions of eMDs and the acquisition of 
Laboratory Information System provider Schuyler House, also completed in 
December, this will allow us to grow at an above-average and profitable rate 
in the coming years." 
 
Derek Pickell, CEO of eMDs, emphasizes in his comment: "The investment by 
CompuGroup Medical gives us all an additional push. With combined forces, we 
will offer solutions that help our customers, partners and employees to 
improve services - and thereby serve the health of all patients. I am 
looking forward to continuing the growth story of eMDs together with 
Benedikt Brückle and his team now as part of CompuGroup Medical and to 
advance it significantly stronger together." 
 
*About CompuGroup Medical SE & Co. KGaA* 
CompuGroup Medical is one of the leading eHealth companies in the world. 
With a revenue base of EUR 746 million in 2019, its software products are 
designed to support all medical and organizational activities in doctors' 
offices, pharmacies, laboratories and hospitals. Its information services 
for all parties involved in the healthcare system and its web-based personal 
health records contribute towards safer and more efficient healthcare. 
CompuGroup Medical's services are based on a unique customer base of more 
than 1.6 million users, including doctors, dentists, pharmacists and other 
health professionals in inpatient and outpatient facilities. With locations 
in 18 countries and products in 56 countries worldwide, CompuGroup Medical 
is the eHealth company with one of the highest coverages among eHealth 
service providers. Approximately 8,000 highly qualified employees support 
customers with innovative solutions for the steadily growing demands of the 
healthcare system (including the now counted employees of eMDs). 
 
*Contact for media representatives:* 
Michael Franz 
Head of Brand Communication 
P [phone] 
F [phone] 
E-mail: [e-mail] 
 
*Contact for analysts and investors:* 
Claudia Thomé 
Head of Investor Relations 
P [phone] 
F [phone] 
E-mail: [e-mail] 
 
2020-12-21 Dissemination of a Corporate News, transmitted by DGAP - a 
service of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
 
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Archive at www.dgap.de 
Language:    English 
Company:     CompuGroup Medical SE & Co. KGaA 
             Maria Trost 21 
             56070 Koblenz 
             Germany 
Phone:       [phone] 
Fax:         [phone] 
E-mail:      [e-mail] 
Internet:    www.cgm.com 
ISIN:        DE000A288904 
WKN:         A28890 
Indices:     MDAX, TecDAX 
Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated 
             Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, 
             Stuttgart, Tradegate Exchange 
EQS News ID: 1156762 
 
End of News DGAP News Service 
 
1156762 2020-12-21 
 
 

(END) Dow Jones Newswires

December 21, 2020 13:16 ET (18:16 GMT)