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Cegedim has received a binding offer for the major part of its CRM and Strategic Data division

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.

 

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

 

Contact numbers:

  France: +33 1 70 77 09 46

US : +1 866 907 5928

UK and others: +44 (0)20 3367 9453

 

No Access code required

Financial calendar

July 29, 2014 (after the stock market closes)

  • Q2 2014 Revenue announcement

September 18, 2014 (after the stock market closes)

  • H1 2014 Results announcement

October 28, 2014 (after the stock market closes)

  • Q3 2014 Revenue announcement

November 27, 2014 (after the stock market closes)

  • Q3 2014 Results announcement
About Cegedim :  

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 revenue.

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