IMS Health, a global provider of information and technology services to the healthcare and life sciences industries, has announced its intention to acquire certain Cegedim information solutions and Customer Relationship Management (CRM) businesses for €385 million in cash.
Cegedim is a global technology and services company specialising in healthcare. The proposed transaction includes Cegedim's CRM solutions that help life sciences clients in 80 countries drive sales effectiveness, optimise marketing programs across multiple channels and mitigate regulatory compliance risks; OneKey Reference Database that provides insights on 13.7 million healthcare professionals across the globe; and information solutions that use primary market research. In 2013, these businesses collectively generated revenue of €424 million and adjusted EBITDA of €64 million. The acquired businesses will bring to IMS Health a team of more than 4,500 talented professionals with deep information and technology skills in areas that include software development, data warehousing, mobile applications and business intelligence tools, as well as analytics and implementation services.
IMS Health expects to finance this acquisition through a mix of cash on hand and existing credit facilities, with no material impact on its leverage ratio.
The proposed transaction is subject to works council information and consultation requirements in certain countries, as well as customary regulatory and other closing conditions. Closing is anticipated in early 2015.
As a result of the anticipated timing, IMS Health's 2014 full-year guidance provided during the company's first-quarter earnings call is unchanged. Post closing, the transaction would be immediately accretive to Adjusted Net Income and Adjusted Earnings per Share. Previously announced medium-term guidance of growth rates in the mid-single digits for revenue and 1.5x revenue growth for Adjusted EBITDA would remain unchanged following the transaction.
IMS Health's management team will host a conference call and webcast to discuss the proposed transaction at 8:30 a.m. Eastern Time on June 25. Interested parties are invited to listen to the live event via webcast on IMS Health's Investor Relations website at http://ir.imshealth.com. The discussion also will be available by dialing +1-800-771-6916 in the U.S. and Canada, or +1-212-271-4657 for international callers.
