(Bloomberg) — CVC Capital Partners Plc has offered to acquire CompuGroup Medical SE & Co. KGaA private in a deal that values the German software provider at €1.18 billion ($1.2 billion).
Most read from Bloomberg
CVC has offered 22 euros per share in cash to the German technology company, which makes healthcare software, the company said in a statement on Monday, confirming an earlier Bloomberg News report.
CVC has ramped up deals after raising €26 billion last year for the world’s largest ever buyout fund – a stark contrast to peers that had to delay fundraising or adjust expectations. The company has deployed €13.4 billion this year through June, according to its first set of financial results since its IPO.
CompuGroup issued a profit warning and changed CEOs in July, predicting a decline in operating profit amid challenges for the units that serve doctors and hospitals, sending its shares tumbling. The stock was down 57% this year through Friday.
Shares rose 31% to €21.54 at 9:42 a.m. in Frankfurt trading on Monday. CompuGroup closed at €16.35 in Frankfurt on Friday.
Frank Gotthardt, a computer science student, founded CompuGroup in 1987 and launched it in 2007. He and his dentist wife, Brigitte Gotthardt, and their doctor son, Daniel Gotthardt, as well as a related shareholder, Reinhard Koop, own a majority. The shareholder group around the Gotthardt family, which founded CompuGroup, plans to retain its approximately 50.1% stake in the company.
The company appointed Daniel Gotthardt as CEO this year after the company mutually agreed to terminate Michael Rauch’s contract early.
The company supplies ambulatory information systems, or software for medical practices, as well as IT for hospitals and pharmacies. CompuGroup had an annual turnover of approximately €1.19 billion in 2023 with products in 60 countries and more than 8,700 employees in 19 countries, a fact sheet shows.
Analysts at Hauck & Aufhaeuser began their coverage of CompuGroup this month with a sell rating, saying the software company is “structurally losing its lead” in its largest division AIS, which has been ceding share in its core German market for more than a decade.
(Updates with CVC launching the takeover bid.)
Most read from Bloomberg Businessweek
©2024 BloombergLP
