CompuGroup shares surge 31% on strategic partnership with CVC
Shares of CompuGroup Medical (ETR:COP1n) surged more than 31% on Monday after the company announced in a statement that it has entered into a partnership agreement with CVC Capital Partners (WA:CPAP), a Luxembourg-based private equity firm.
The announcement, which included plans for CVC to launch a voluntary public tender offer for the company’s outstanding shares at €22.00 per share, represents a premium to recent trading prices.
The proposed offer price represents a 51.1% premium to the volume-weighted average share price over the past three months and a 33.5% premium to the closing price as of Friday.
The tender offer is expected to provide immediate value creation for shareholders while supporting CompuGroup Medical’s long-term growth strategy.
“Partnering with CVC will allow us to capitalize on larger growth opportunities, such as investments in inorganic growth and increasing our focus on cloud-based products and AI-powered solutions,” Daniela Hummel, CompuGroup Medical’s chief financial officer, said in a statement.
The company, which develops software for healthcare providers worldwide, aims to expand its reach and enhance its product offerings under the partnership.
Combio Group Medical’s management expressed optimism about the strategic fit with CVC, emphasizing the potential for innovation and quality improvement for the benefit of both medical professionals and patients.
The major shareholders, including the founding Gotthardt family and related shareholder Dr. Reinhard Kopp, have committed to retaining their majority stake.
Together, they own 50.1% of the company’s shares and have signed a strategic partnership agreement with CVC. Founder Frank Gotthardt will remain Chairman of the Board of Directors, while Daniel Gotthardt will continue as CEO.
CVC’s offer to acquire at least 17% of the outstanding shares and obtain regulatory approvals, including antitrust approval.
Upon completion of the transaction, CVC and its partners will own at least 67% of the company’s shares. The delisting of Compio Group Medical is planned for later, with details to follow on the expected conclusion of the takeover bid in the first half of 2025. The acceptance period for the takeover bid is expected to begin later this month, pending approval by the German Federal Financial Supervisory Authority.