The transaction is structured as a reverse triangular merger under U.S. law. The consideration to be paid to the current shareholders of eMDs is based on an enterprise value of $240 million, which will be adjusted inter alia for amounts of cash, financial debt, and networking capital (compared to a reference amount) as of the closing date.
eMDs’ customer base consists of more than 60,000 providers in more than 70 disciplines, and its products include Ambulatory Information Systems and outsourcing services for medical accounting.
Frank Gotthardt, founder, and CEO of CompuGroup Medical SE & Co. KGaA, stated in the company press release: “The fit with our existing product portfolio is perfect. We have established a solid foundation in the United States in recent years and are already number 2 in the important field of Laboratory Information Systems for Physician Owned Labs (POLs) and Reference Labs. We are firmly convinced that both CGM and eMDs customers will benefit from this transaction through complementary product strengths.”
Benedikt Brueckle, CEO, CompuGroup Medical U.S., commented: “With eMDs, we are considerably enhancing our product portfolio in the United States. We are acquiring innovative and strongly growing products here, recently recognized with several awards by KLAS. I am looking forward to more than 60,000 healthcare professionals in 32,000 facilities and more than 100 effective distribution partners, who will become an important building block of the CGM success story in the United States.”
“With CompuGroup Medical, we have found a partner that understands the US Health IT and technology-enabled services business and shares our goal of market leadership and further driving the digitization of healthcare. We are looking forward to working jointly on innovative eHealth solutions for our common customers,” said Derek Pickell, CEO, eMDs.
According to the Mercom database, almost 2,000 digital health companies have been involved in M&A transactions since 2010.
Image credit: eMDs