M&A: CompuGroup Medical Acquires eMDs for $240M

M&A: CompuGroup Medical Acquires eMDs for $240M

What You Should Know:

– CompuGroup Medical (CGM) acquires eMDs, Inc. (eMDs), a
leading provider of healthcare IT with a focus on doctors’ practices in the US,
reaching an attractive size in the biggest healthcare market worldwide.

– CGM is building an attractive platform for future
growth through complementary product portfolios and the ability to provide
comprehensive solutions for doctors’ practices.


CompuGroup
Holding USA, Inc.,
a 100 % subsidiary of CompuGroup Medical SE &
Co. KGaA announced it has acquired
eMDs, an Austin, TX-based provider of electronic health records
(EHRs),
practice management software, revenue cycle
management
solutions, and credentialing services for physician practices
and enterprises. The acquisition is structured as a reverse triangular merger
under U.S. law. eMDs’ key products are Ambulatory Information Systems and
outsourcing services for medical accounting.

Financial Details

With this acquisition, the US subsidiary of CGM
significantly broadens its position and will become the top 4 providers in the
market for Ambulatory Information Systems in the US. The consideration to be
paid to the current shareholders of eMDs is based on an enterprise value of $240M
(equal to approx. EUR 203 million), which will be adjusted inter alia for
amounts of cash, financial debt and net working capital (compared to a
reference amount) as of the closing date. In the fiscal year 2019/2020 (ended
03/31/2020), eMDs had revenues of approximately EUR 81 million and an adjusted
EBITDA of approximately EUR 12 million with more than 60,000 healthcare
providers.

Founded by physicians, the company is an industry leader for
usable, connected software that enables physician productivity and a superior
clinical experience. eMDs’ customer base today consists of more than 60,000
providers in more than 70 disciplines. eMDs is operating in the highly
attractive US healthcare IT market that shows a high equipment rate with IT
solutions for healthcare professionals. eMDs has more than 1,400 employees at
locations in the United States and India.

“The fit with our existing product portfolio is perfect. We have established a solid foundation in the United States in recent years and are already number 2 in the important field of Laboratory Information Systems for Physician Owned Labs (POLs) and Reference Labs,” said Frank Gotthardt, founder and CEO of CompuGroup Medical SE & Co. KGaA. The Germany-based corporation is one of the leading providers for eHealth solutions worldwide. “We are firmly convinced that both CGM and eMDs customers will benefit from this transaction through complementary product strengths.”

Achieve Business and Clinical Resiliency in Times of Change

Follow along with our blog series #HealthcareNow and #PublicSectorNow, where we’ll address healthcare innovation around the world and how to maintain business continuity in today’s health climate. 

Change. It’s constantly redefining the healthcare landscape, whether triggered by technology innovations, cultural shifts, or world events.   

Healthcare organizations understand this and plan for it, putting continuity and recovery plans in place to help them maintain normal operations as much as possible in times of change. 

However, with the recent pandemic many healthcare organizations were faced with changes so great and so fast, there was no “normal” to return to. 

The industry is quickly changing, and healthcare organizations are pivoting their services and work environments to be more flexible and resilient. 

According to this recent PwC Pulse Survey, 90% of healthcare executives are prioritizing changing workplace safety measures and requirements as their employees transition back into the clinical space. 67% plan to make remote work a permanent option for roles that allow it, and 70% are actively working to improve the remote work experience.  

Healthcare organizations are managing the acceleration of existing trends such as overnight increases in remote workforce, increased security concerns and exponential growth in telehealth and virtual care  

Couple that with the appearance of new dynamics such as prioritization of worker safety and wellness in the care facility, patient consumerism, shifts in care delivery sites and disruption of business and patient-care models, and organizations have a lot to consider when it comes to balancing acceleration and disruption to become future ready.  

With these massive shifts in prioritizes, we believe it’s time to look beyond “normal” or even the “new normal” and embrace the ever-changing reality of our future with new levels of resilience. Not to just recover and adjust in the face of change, but to thrive.   

This is where Cisco makes a difference. You need secure, healthcare solutions designed and built for change at scale across your organization.  

Cisco Business and Clinical Resiliency Solutions help provide a safer work environment for your clinicians and staff and a trusted experience for your patients, while maintaining continuity of care.   

With unmatched healthcare expertise that spans networking, security, cloud, data center and collaboration, Cisco and our ecosystem of partners can deliver a complete healthcare solution that empowers your workforce to triage and care for patients remotely and allows administrative staff to work from home.  

We’d love to hear what you think. Comment below and stay tuned for the next blog in our #HealthcareNow series.