CVC discussing acquisition of German software company CompuGroup
CVC Capital Partners is currently in talks to potentially take CompuGroup Medical SE & Co KGaA, a German software provider for the healthcare sector, private. The company, founded by computer science student Frank Gotthardt in 1987 and later listed in 2007, is located in Koblenz.
CompuGroup has been discussing a potential offer from CVC, which could amount to 22 euros per share. It’s important to note that under the terms being discussed, the shareholder group connected to the Gotthardt family, who founded CompuGroup, would still maintain their approximately 50.1 per cent stake in the company.
Despite having a current market value of 878.6 million euros (S$1.2 billion), the company has experienced a significant decrease in its share price of over 50 per cent this year due to challenging profit projections. For reference, the stock closed at 16.35 euros in Frankfurt last Friday.
CompuGroup made headlines in July when they issued a profit warning, predicting either stagnant or decreasing organic revenue and a decline in operating profit. This led to the appointment of Daniel Gotthardt as the chief executive officer, following the amicable termination of CEO Michael Rauch’s contract.
The company offers different software solutions for doctors’ offices, hospitals, and pharmacies, with annual revenue hitting about 1.2 billion euros in 2023. It operates in 60 countries with over 8,700 employees spread across 19 countries.
According to analysts at Hauck & Aufhaeuser, CompuGroup has been facing challenges, particularly in its largest division, AIS, where it has been losing market share in its core German market for over a decade. This prompted them to start coverage of the company with a sell rating.
Interestingly, Frank Gotthardt, the company’s founder, has a passion for vintage cars and is a prominent supporter of the Koelner Haie, or Cologne Sharks, an ice hockey club.
We’ll keep you updated on the latest developments regarding CVC’s potential acquisition of CompuGroup.
