German medical software company CompuGroup Medical has approached Belgian graphics group Agfa-Gevaert about a possible takeover, the two companies said on Friday.
Agfa makes medical IT products, which would add to CompuGroup’s range of software for doctors’ offices, pharmacies and hospitals, and also has a portfolio of other products including X-ray machines.
The combined company would have annual sales of more than 3 billion euros ($3.3 billion).
CompuGroup said it had given Agfa’s board of directors a non-binding indication of interest but said it was not certain that it would end up making a firm offer.
“The discussions between the companies are at an early stage. No response has been given to the indication of interest and CompuGroup Medical SE has not been able to verify or discuss any of the assumptions and conditions underlying its indication of interest,” CompuGroup said.
Agfa, whose market value has shrunk by a third to 616 million euros this year, said its board would evaluate CompuGroup’s approach carefully.
The news sent shares in Agfa up 6.2 percent to a six-month high of 3.80 euros.
CompuGroup shares were down 3.7 percent in early trade, with traders citing concerns that the German company would be overtaxing itself with a takeover of Agfa.
“We think a takeover offer by CompuGroup will only occur if they have a solution for Agfa Graphics and the 1.25 billion euros pension liabilities in hand,” analysts at KBC said in a note to clients.
CompuGroup has grown through a series of bolt-on acquisitions in recent years, most recently buying a majority in Vega, an Italian distributor of its software, last month.
Agfa, which in 2004 sold its eponymous camera film business which made it a household name, is active in the printing and medical imaging business.
Its healthcare business accounts for about 40 percent of its 2.6 billion euros in annual revenue. ($1 = 0.9158 euros)
By Maria Sheahan and Robert-Jan Bartunek
Source: Reuters
CordenPharma announced its largest strategic investment to date, committing to spend ~€900m over the next three years to enhance its peptide technology platform. The planned investment consists of two major expansion initiatives occurring in parallel in the US and Europe, including both existing facilities and new constructions.
DSM-Firmenich has announced the sale of its MEG-3 fish oil business to KD Pharma Group, a contract development and manufacturing organisation that is active in pharmaceutical and nutritional lipids. As part of the transaction, DSM-Firmenich will obtain a minority stake of 29% in KD Pharma’s parent company O³ Holding GmbH.
Veranova, a development and manufacturing of specialist and complex APIs for the pharmaceutica l and biotech sectors, recently announced the appointment of Cécile Maupas as Senior Vice President, Chief Commercial Officer. Cécile will join the executive team and assume responsibility for business development, marketing, project management, commercial operations, and product management.
