Sector News

Germany's CompuGroup makes takeover approach to Agfa

October 28, 2016
Life sciences

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

comments closed

Related News

September 25, 2022

Rise of the machines: Novo Nordisk pledges $200M to create first quantum computer for life sciences

Life sciences

Big Pharma has long seen the potential for AI and machine learning to accelerate drug development. But Novo Nordisk is going a step further by channeling $200 million toward the creation of a computer that will outrun anything in existence.

September 25, 2022

Mount Sinai AI uncovers new brain analysis method to predict dementia, Alzheimer’s disease

Life sciences

Current methods for diagnosing Alzheimer’s disease rely on a complex combination of self- and caregiver-reported symptoms, a physical examination and either a PET scan or a spinal tap to look for evidence of amyloid plaque build-ups in the brain. But a new artificial intelligence-based method may make the diagnostic process a much more objective one.

September 25, 2022

New AstraZeneca-backed report finds big money behind diverse owners and entrepreneurs in Europe

Life sciences

There is lots of talk about diversity and inclusion in business, including in pharma and medtech. A new report by the Open Political Economy Network (OPEN), a think tank focusing on migration and diversity, released its “Minority Businesses Matter: Europe” report highlighting the successes and challenges of ethnic minority-owned businesses in Europe.