Cegedim : Definitive Purchase Deal Executed For CRM And Strategic Data Division

(RTTNews) - Cegedim, a global technology and services company specializing in the healthcare field, said 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 euros.

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. 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 company noted that it will use the proceeds used to repay debt, thus reinforcing the the company 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 euros, with no impact on the Group's cash.

Cegedim noted that the transaction will allow it to refocus on software and databases for healthcare professionals and health insurance companies, and on its multi-industry activities such as e-business, e-collaboration and outsourced payroll and HR management.