CompuGroup Medical to Acquire Certain Cerner Assets in Germany and Spain

CompuGroup Medical SECompuGroup Medical SE (CGM) and Cerner Corporation (NASDAQ: CERN), a global health care technology company, have entered into an agreement regarding the acquisition by CompuGroup Medical of a part of Cerner's portfolio in Germany and Spain. The key products are medico® and Soarian® Integrated Care (S-IC), leading HISs in Germany; Selene®, a leading HIS for public hospitals in Spain, and Soarian Health Archive®, a document archiving solution for healthcare providers. As a result of the acquisition, CompuGroup Medical is strengthening its position in Germany and complementing its portfolio in Spain. The agreed purchase price amounts to EUR 225 million and is subject to final adjustment upon closing. For 2019, revenues attributable to the assets to be purchased were approximately EUR 74 million with an EBITDA of approximately EUR 13 million.

"The products from this acquisition are an excellent fit with our current portfolio," emphasizes Frank Gotthardt, Chairman and CEO of CompuGroup Medical SE. "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."

"With this acquisition, we will increase our installed customer base in the hospital information system market. At the same time, we will benefit from a great amount of know-how and expert knowledge from our new colleagues. We are convinced that by combining medico and Selene with the CGM connectivity services and our innovative CGM CLINICAL modules we will be able to generate high and long-term added value for our customers in the future," says Hannes Reichl, CGM Board Member Clinical and Social Care.

Cerner has embarked on a company-wide transformation focused on improved operating efficiencies, enhanced client focus, a refined growth strategy and a sharpened approach to portfolio management. The sale of these German and Spanish solutions to CompuGroup Medical are reflective of Cerner's active portfolio management. Barclays acted as exclusive financial advisor to Cerner.

"Most importantly, we believe this is positive for Cerner customers," said Emil Peters, President, Cerner Global. "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."

The customer base of the medico product today consists of 251 hospitals in Germany and the customer base of the Selene product consists of 65 hospitals in Spain. Today, more than one million professional users, including doctors, dentists, pharmacies and other health professionals in outpatient and inpatient health care facilities trust CompuGroup Medical.

Michael Rauch, CGM’s CFO, comments: "This transaction is further enhancing our HIS segment and hence reinforcing our business profile of connecting all health care professionals. The acquisition is EPS accretive to CompuGroup Medical in year one on a pro forma basis and strengthens the cash flow profile of CompuGroup Medical."

Closing of the transaction is expected to occur in the third quarter of 2020, subject to certain regulatory approvals and other closing conditions.

About CompuGroup Medical SE

CompuGroup Medical is one of the leading eHealth companies in the world. With a revenue base of approximately EUR 746 million in 2019, its software products are designed to support all medical and organizational activities in doctors' offices, pharmacies, laboratories and hospitals. Its information services for all parties involved in the healthcare system and its web-based personal health records contribute towards safer and more efficient healthcare. CompuGroup Medical's services are based on a unique customer base of more than 1 millionusers, including doctors, dentists, pharmacists and other health professionalsin inpatient and outpatient facilities. With locations in 19 countries and products in 56 countries worldwide, CompuGroup Medical is the eHealth company with one of the highest coverage among eHealth service providers. More than 5,500 highly qualified employees support customers with innovative solutions for the steadily growing demands of the healthcare system.

About Cerner

Cerner's health technologies connectpeopleand information systems atthousands ofcontracted provider facilitiesworldwidededicated to creating smarter and better care for individuals and communities. Recognized globally for innovation, Cerner assists clinicians in making care decisions and assists organizations in managing the health of their populations. The company also offers an integrated clinical and financial system to help manage day-to-day revenue functions, as well as a wide range of services to support clinical, financial and operational needs, focused on people.

Most Popular Now

AI Catches One-Third of Interval Breast …

An AI algorithm for breast cancer screening has potential to enhance the performance of digital breast tomosynthesis (DBT), reducing interval cancers by up to one-third, according to a study published...

Great plan: Now We need to Get Real abou…

The government's big plan for the 10 Year Health Plan for the NHS laid out a big role for delivery. However, the Highland Marketing advisory board felt the missing implementation...

Researchers Create 'Virtual Scienti…

There may be a new artificial intelligence-driven tool to turbocharge scientific discovery: virtual labs. Modeled after a well-established Stanford School of Medicine research group, the virtual lab is complete with an...

From WebMD to AI Chatbots: How Innovatio…

A new research article published in the Journal of Participatory Medicine unveils how successive waves of digital technology innovation have empowered patients, fostering a more collaborative and responsive health care...

New AI Tool Accelerates mRNA-Based Treat…

A new artificial intelligence (AI) model can improve the process of drug and vaccine discovery by predicting how efficiently specific mRNA sequences will produce proteins, both generally and in various...

AI also Assesses Dutch Mammograms Better…

AI is detecting tumors more often and earlier in the Dutch breast cancer screening program. Those tumors can then be treated at an earlier stage. This has been demonstrated by...

RSNA AI Challenge Models can Independent…

Algorithms submitted for an AI Challenge hosted by the Radiological Society of North America (RSNA) have shown excellent performance for detecting breast cancers on mammography images, increasing screening sensitivity while...

AI could Help Emergency Rooms Predict Ad…

Artificial intelligence (AI) can help emergency department (ED) teams better anticipate which patients will need hospital admission, hours earlier than is currently possible, according to a multi-hospital study by the...

Head-to-Head Against AI, Pharmacy Studen…

Students pursuing a Doctor of Pharmacy degree routinely take - and pass - rigorous exams to prove competency in several areas. Can ChatGPT accurately answer the same questions? A new...

NHS Active 10 Walking Tracker Users are …

Users of the NHS Active 10 app, designed to encourage people to become more active, immediately increased their amount of brisk and non-brisk walking upon using the app, according to...

New AI Tool Illuminates "Dark Side…

Proteins sustain life as we know it, serving many important structural and functional roles throughout the body. But these large molecules have cast a long shadow over a smaller subclass...

Deep Learning-Based Model Enables Fast a…

Stroke is the second leading cause of death globally. Ischemic stroke, strongly linked to atherosclerotic plaques, requires accurate plaque and vessel wall segmentation and quantification for definitive diagnosis. However, conventional...