CVC Capital Partners Plc has proposed a €1.18 billion ($1.2 billion) deal to take CompuGroup Medical SE & Co. KGaA private. The offer values the German health-care software provider at €22 per share in cash, representing a significant premium over its Friday closing price of €16.35.
The Gotthardt family, founders and majority shareholders of CompuGroup, will retain their 50.1% stake as part of a strategic partnership with CVC. Following the announcement, CompuGroup shares surged as much as 34% in Frankfurt trading, marking their largest one-day gain since 2008.
CVC’s offer comes at a challenging time for CompuGroup, which issued a profit warning in July and replaced its CEO, with Daniel Gotthardt stepping into the role. The company has faced difficulties in its doctor and hospital software divisions, leading to a 57% decline in its stock price this year before the announcement.
Despite these setbacks, CVC managing partner Daniel Pindur expressed optimism, stating the firm aims to stabilize CompuGroup and drive profitable growth. CVC has a history of investments in the health-care IT sector, including ownership of UK-based System C and Italy’s RGI.
Founded in 1987 by Frank Gotthardt, CompuGroup specializes in Ambulatory Information Systems and health IT solutions. The company operates in 60 countries with over 8,700 employees and posted €1.19 billion in revenue in 2023. Analysts have noted structural challenges in its core markets, particularly in Germany, where its AIS division has been losing market share for over a decade.
CVC’s proposal could provide the financial flexibility needed for CompuGroup to regain its competitive edge and address declining profitability.
