Acquisition will widen the presence in the Hospitalist industry

Bad Homburg, Germany - Fresenius Medical Care AG & Co. KGaA (the "company" or "Fresenius Medical Care"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS) announced today that Sound Physicians Inc. (Sound) has entered into an agreement to acquire Cogent Healthcare (Cogent) with more than 650 providers, who offer hospitalist and intensivist services to more than 80 hospitals throughout the United States. Combined, the expanded Sound Physicians organization will now serve over 180 hospitals in 35 states with more than 2,250 providers including physicians and advanced care practitioners. Fresenius Medical Care is the majority shareholder in Sound.

The company expects Cogent to generate approximately $250 million in revenue in 2015 and expects the investment to be accretive to earnings within 18-24 months after closing including the transaction/integration cost and potential synergies. The investment will be financed through available cash. The parties involved agreed not to disclose the financial terms of the acquisition.

"Sound Physicians is a critical partner in fulfilling our mission to improve the lives of every patient every day," said Rice Powell, Fresenius Medical Care Chief Executive Officer. "With this acquisition, Sound Physicians continues to augment our network of dialysis, cardiac and vascular care centers, renal pharmacy and full service and specialty laboratories to help us better address the full spectrum of our patients' health care needs. Going forward, Sound will be better positioned than ever to deliver the highest quality care to patients in the acute setting and reduce costs for its hospital partners."

"Combining Cogent Healthcare's reach with Sound Physicians' patient-centered approach, web-based workflow platform and experienced physician leadership together clearly positions Sound Physicians as the partner of choice for the acute episode of care and the practice of choice for providers," noted Rob Bessler, MD, Chief Executive Officer of Sound Physicians. "By coming together, we believe we can continue to advance innovation and improvement in the acute episode of care throughout the U.S."

The parties expect the transaction, which remains subject to regulatory clearance, to close this quarter.


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