CompuGroup Medical, a German health care software company, agreed to acquire certain assets from Cerner’s Healthcare IT business in Germany and Spain, for €225 million ($248 million).
CompuGroup Medical acquisition included medico and Soarian Integrated Care, which are health information systems in Germany. Selene, a health information system for public hospitals in Spain, and Soarian Health Archive, a system for digitizing and storing health information.
The customer base of the medico product consists of 251 hospitals in Germany, and the customer base of the Selene product consists of 65 hospitals in Spain.
“Most importantly, we believe this is positive for Cerner customers,” said Emil Peters, President, Cerner Global, in a company press release. “CompuGroup Medical is a leading, global health-IT company and has a strong customer-centric focus. While we refine our strategic focus and align around Cerner’s core global assets, we believe clients transitioning to CompuGroup Medical will be in very good hands.”
For 2019, revenues attributable to the assets to be purchased were approximately €74 million (~$82 million), with an EBITDA of approximately €13 million (~$14 million).
The acquisition is expected to strengthen CompuGroup Medical’s market position in Germany and Spain.
“The products from this acquisition are an excellent fit with our current portfolio,” emphasizes Frank Gotthardt, Chairman and CEO of CompuGroup Medical SE, in a press release. “Existing customers of CGM, as well as those of medico, S-IC, S-HA and Selene, will benefit from this transaction: The products acquired from Cerner complement our existing portfolio of products perfectly, and we believe the exchange between professionals of all healthcare segments will be further intensified. For all of our customers, this means that they will be optimally prepared for a world in which the patient journey is increasingly cross-institutional and cross-sectoral. And this is true regardless of whether they are doctors’ or dentists’ practices, hospitals, laboratories, pharmacies, rehabilitation or care facilities or other service providers.”
The acquisition is expected to close in Q3 2020, subject to certain regulatory approvals and other closing conditions.
In 2019, there were a total of 169 deals M&A transactions, compared to 223 in 2018, according to Mercom Q4 and Annual 2019 Digital Health Funding and M&A Report. CompuGroup Medical has acquired 12 Digital Health companies since 2010.
