Cegedim plans to respond positively to any acquisition offer for its Cegelease business
13 Juillet 2017 - 8:00PM
Financial information
IFRS - Regulated information
Cegedim plans to respond
positively to any acquisition offer for its Cegelease
business
Disclaimer: This press release is available in
French and in English. In the event of any difference between the
two versions, the original French version takes precedence. This
press release may contain inside information. It was sent to
Cegedim's authorized distributor, under embargo, on July 13, no
earlier than 5:45 pm Paris time.
The term "business model transformation" is
defined in the glossary. |
Boulogne-Billancourt, France,
July 13, 2017 after the market close
Cegedim, an innovative technology
and services company, has decided to sell its Cegelease business as
part of its business model transformation strategy.
Since 2001, Cegelease, a wholly owned
subsidiary of Cegedim, has been offering
leasing contracts chiefly to pharmacies and healthcare
professionals in France. The company has evolved from a reseller of
products developed exclusively by the Group into a broker offering
multi-solution financing contracts to a wide variety of clients.
Today, Cegedim accounts for a minority of
Cegelease's revenues. Eurofarmat, a wholly owned subsidiary of Cegedim Logiciels Médicaux, now specializes in selling
used equipment and also develops and maintains the software used by
Cegelease.
As part of the business model
transformation plan that the Group initiated in fall 2015,
Cegedim has decided to divest ifs Cegelease and Eurofarmat
subsidiaries. These subsidiaries operate principally in the
financial domain, are highly valued, and require additional
resources to continue pursuing and accelerating their development
for the benefit of their clients and employees.
The two businesses have 24
employees in France. In 2016 they contributed €5.4 million to Group
consolidated EBITDA. The subsidiaries' standalone EBITDA amounted
to €18.1 million in 2016.
If the Group receives satisfactory
offers and is able to obtain the necessary approvals, it plans to
close the deal in the second half of 2017. The Group in no way
guarantees that a deal will be carried out.
A successful sale would give the
Group a portfolio of businesses that fit well together and generate
strong synergies. Cegedim is not planning any
further divestments.
Cegedim
reiterates that the Group was in compliance with its "Covenant"
debt ratios as of June 30, 2017. A successful sale would improve
those ratios significantly.
Assisting Cegedim on this transaction are the consulting firm of
Ohana & Co and the law firm of Freshfields Bruckhaus
Deringer.
Immediately after issuing this
press release, the Group's quiet period will resume until its Q2
2017 revenue announcement on July 27.
Activities not allocated: This
division encompasses the activities the Group performs as the
parent company of a listed entity, as well as the support it
provides to the three operating divisions.
BPO (Business Process Outsourcing): BPO is the
contracting of non-core business activities and functions to a
third-party provider. Cegedim provides BPO services for human
resources, Revenue Cycle Management in the US and management
services for insurance companies, provident institutions and mutual
insurers.
Business model transformation: Cegedim decided
in fall 2015 to switch all of its offerings over to SaaS format, to
develop a complete BPO offering, and to materially increase its
R&D efforts. This is reflected in the Group's revamped business
model. The change has altered the Group's revenue recognition and
negatively affected short-term profitability
EPS: Earnings Per Share is a specific
financial indicator defined by the Group as the net profit (loss)
for the period divided by the weighted average of the number of
shares in circulation.
Operating expenses: Operating expenses is
defined as purchases used, external expenses and payroll
costs.
Revenue at constant exchange rate: When
changes in revenue at constant exchange rate are referred to, it
means that the impact of exchange rate fluctuations has been
excluded. The term "at constant exchange rate" covers the
fluctuation resulting from applying the exchange rates for the
preceding period to the current fiscal year, all other factors
remaining equal.
Revenue on a like-for-like basis: The effect
of changes in scope is corrected by restating the sales for the
previous period as follows:
-
by removing the portion of sales originating in
the entity or the rights acquired for a period identical to the
period during which they were held to the current period;
-
similarly, when an entity is transferred, the
sales for the portion in question in the previous period are
eliminated.
Life-for-like data (L-f-l): At constant scope
and exchange rates.
Internal growth: Internal growth covers growth
resulting from the development of an existing contract,
particularly due to an increase in rates and/or the volumes
distributed or processed, new contracts, acquisitions of assets
allocated to a contract or a specific project. |
|
External growth: External growth
covers acquisitions during the current fiscal year, as well as
those which have had a partial impact on the previous fiscal year,
net of sales of entities and/or assets.
EBIT: Earnings Before Interest and Taxes. EBIT
corresponds to net revenue minus operating expenses (such as
salaries, social charges, materials, energy, research, services,
external services, advertising, etc.). It is the operating income
for the Cegedim Group.
EBIT before special items: This is EBIT
restated to take account of non-current items, such as losses on
tangible and intangible assets, restructuring, etc. It corresponds
to the operating income from recurring operations for the Cegedim
Group.
EBITDA: Earnings before interest, taxes,
depreciation and amortization. EBITDA is the term used when
amortization or depreciation and revaluations are not taken into
account. "D" stands for depreciation of tangible assets (such as
buildings, machines or vehicles), while "A" stands for amortization
of intangible assets (such as patents, licenses and goodwill).
EBITDA is restated to take account of non-current items, such as
losses on tangible and intangible assets, restructuring, etc. It
corresponds to the gross operating earnings from recurring
operations for the Cegedim Group.
Adjusted EBITDA : Consolidated EBITDA
adjusted, for 2016, for the €4.0m of negative impact from
impairment of receivables in the Healthcare Professional
division
Net Financial Debt: This represents the
Company's net debt (non-current and current financial debt, bank
loans, debt restated at amortized cost and interest on loans) net
of cash and cash equivalents and excluding revaluation of debt
derivatives.
Free cash flow: Free cash flow is cash
generated, net of the cash part of the following items: (i) changes
in working capital requirements, (ii) transactions on equity
(changes in capital, dividends paid and received), (iii) capital
expenditure net of transfers, (iv) net financial interest paid and
(v) taxes paid.
EBIT margin: EBIT margin is defined as the
ratio of EBIT/revenue.
EBIT margin before special
items: EBIT margin before special items is defined as the ratio
of EBIT before special items/revenue.
Net cash: Net cash is defined as cash and cash
equivalent minus overdraft.
|
Glossary
About Cegedim:
Founded in 1969, Cegedim is an innovative technology and services
company in the field of digital data flow management for healthcare
ecosystems and B2B, and a business software publisher for
healthcare and insurance professionals. Cegedim employs more than
4,000 people in 11 countries and generated revenue of €441 million
in 2016. Cegedim SA is listed in Paris (EURONEXT: CGM).
To learn more, please visit: www.cegedim.com
And follow Cegedim on Twitter: @CegedimGroup
|
Aude Balleydier
Cegedim
Media
Relations
and Communications Manager
Tel.: +33 (0)1 49 09 68 81
aude.balleydier@cegedim.com |
Jan Eryk Umiastowski
Cegedim
Chief Investment Officer
and head of Investor Relations
Tel.: +33 (0)1 49 09 33 36
janeryk.umiastowski@cegedim.com |
Anne Pezet
PRPA Agency
Media Relations
Tel.: +33 (0)1 46 99 69 69
anne.pezet@prpa.fr |
Follow Cegedim:
|
Cegedim_13072017_ENG
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Cegedim SA via Globenewswire
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