TMCnet News
Cegedim: Execution of the Definitive Purchase Agreement for Its CRM and Strategic Data DivisionPARIS --(Business Wire)-- Regulatory News: Cegedim, a global technology and services company specializing in the healthcare field, today announced that a definitive purchase agreement has been executed for its CRM and Strategic Data division with IMS Health Inc. for a cash price of €385 million(1). The signing comes after the group successfully informed and consulted its works councils, receiving a positive opinion from all countries where the consultations were required; and after a unanimously positive vote from the Cegedim Board of Directors. On October 1st, 2014, the AMF confirmed that the contemplated transaction did not justify a compulsory buyout offer under Article 236-6 of its General Regulations. The activities concerned represent 47% of 2013 revenue (excluding intra-Group revenue), 42.8% of 2013 EBIT before special items, and 40.8% of 2013 EBITDA The operation will now be submitted to antitrust authorities for review, and it is anticipated that the closing will occur in early 2015. The proceeds will be used to repay debt, thus reinforcing the Cegedim balance sheet and P&L statement, resulting in a leverage ratio close to 1 and margin improvement based on 2013 pro forma figures. The transaction will, however, lead Cegedim to recognize, between the end of 2014 and the effective time of the sale, an accounting loss of approximately €180 million, with no impact on the Group's cash. This transaction 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. "By leveraging its key strengths, notably its efficient and motived teams, maintaining its investment and adapting its products to new requirements, Cegedim aims to remain a leader in its field," said Jean-Claude Labrune, Cegedim Chairman & CEO. The Group will again be in a quiet period immediately after the conference call held on Monday, October 20th, at 6:00pm CET, and will remain so until the Q3 2014 revenue release.
October 28, 2014 (after the stock market closes)
November 27, 2014 (after the stock market closes)
December 16, 2014 - 2:30 pm to 5:30 pm (welcome coffee at 2:00 pm)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
