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Cegedim has received a binding offer for the major part of its CRM and Strategic Data divisionPARIS --(Business Wire)-- Regulatory News: Cegedim, a global technology and services company specializing in the healthcare field, has received a binding offer from IMS Health Inc. for the acquisition of the major part of the businesses of its CRM and strategic data division for a cash price of €385 million1. "From an industrial perspective, the proposed transaction is a response to the significant market changes in the pharmaceutical industry. This is an outstanding transaction that brings together the complementary service offerings of IMS Health and Cegedim. It will give the pharmaceutical industry access to a significantly expanded commercial suite of services," said Jean-Claude Labrune, Chairman and CEO of Cegedim. In addition, Jean-Claude Labrune mentions that "This is recognition of the relevance and competitiveness of Cegedim's global offerings which help pharmaceutical companies to manage their sales and marketing operations. We believe this offer could create tremendous opportunities for our clients, our people and our shareholders." This transaction, if accepted, will allow Cegedim to refocus on software and databases for healthcare professionals and health insurance companies, and on its fast growing multi-industry activities such as e-business, e-collaboration and outsourced payroll and HR management. The major part of the proceeds would be used to repay the debt thus reinforcing the Cegedim balance sheet and P&L statement with a leverage ratio close to 1 and an improvement in margin. The offer will, however, lead to a significant impairment of goodwill. Cegedim will update the market as soon as possible with some more details. The activities concerned represent 47% of 2013 revenue (excluding intra-Group), 43% of 2013 EBIT before special items and 41% of 2013 EBITDA 41%. The offer includes the transfer of businesses from the CRM and Strategic Data division excluding those from departments providing sales data in EU, such as GERS France and Pharmastock. In compliance with regulatory requirements in some jurisdictions the works councils will be consulted concerning this operation. In this context, the concert consisting of FCB and BPI France, which controls Cegedim, will seek the AMF to confirmation that article 236-6 of the General Regulations would not apply. It will be then submitted for decision to the board of directors before the end of November 2014. If accepted, closing is anticipated following regulatory approvals in early 2015. Ashurst LLP is Cegedim's legal advisor on this operation.
Financial calendar July 29, 2014 (after the stock market closes)
September 18, 2014 (after the stock market closes)
October 28, 2014 (after the stock market closes)
November 27, 2014 (after the stock market closes)
1 On a cash free debt free basis, subject to certain adjustments based on the Group's net debt at the date of completion, changes in net working capital and 2014 CRM and strategic data division revenue.
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