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
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
Ashurst LLP is Cegedim's legal advisor on this operation.
The Group will hold a conference call in English to present to
analysts and investors the proposed transaction on June 25th,
2014, at 8:00am and at 6:00pm (Paris time).
The call will be hosted by Jan Eryk Umiastowski, Cegedim Chief
Investment Officer and Head of Investor Relations.
A presentation of the proposed transaction will be available on
the website: http://www.cegedim.com/finance/documentation/Pages/presentations.aspx
US : +1 866 907 5928
UK and others: +44 (0)20 3367 9453
No Access code required
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)
Founded in 1969, Cegedim is a global technology and services
company specializing in the healthcare field. Cegedim supplies
services, technological tools, specialized software, data flow
management services and databases. Its offerings are targeted
notably at healthcare industries, life sciences companies,
healthcare professionals and insurance companies. The world leader
in life sciences CRM, Cegedim is also one of the leading suppliers
of strategic healthcare industry data. Cegedim employs 8,000
people in more than 80 countries and generated revenue of €902
million in 2013. Cegedim SA is listed in Paris (EURONEXT: CGM).
To learn more, please visit: www.cegedim.com
And follow Cegedim on Twitter: @CegedimGroup
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
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