DANBURY, Conn.--(BUSINESS WIRE)--
IMS Health (NYSE:IMS), a leading global provider of information and
technology services to the healthcare and life sciences industries,
today announced its intention to acquire certain Cegedim information
solutions and Customer Relationship Management (CRM) businesses for €385
million (approximately $520 million) in cash.
Cegedim is a global technology and services company specializing in
healthcare. The proposed transaction includes Cegedim’s CRM solutions
that help life sciences clients in 80 countries drive sales
effectiveness, optimize marketing programs across multiple channels and
mitigate regulatory compliance risks; OneKey Reference Database that
provides insights on 13.7 million healthcare professionals across the
globe; and information solutions that use primary market research. In
2013, these businesses collectively generated revenue of €424 million
(approximately $573 million) and adjusted EBITDA of €64 million
(approximately $86 million). The acquired businesses will bring to IMS
Health a team of more than 4,500 talented professionals with deep
information and technology skills in areas that include software
development, data warehousing, mobile applications and business
intelligence tools, as well as analytics and implementation services.
“Cegedim’s complementary offerings will accelerate the build-out of our
strategic roadmap in information and technology services,” said
Ari
Bousbib
, chairman and CEO, IMS Health. “The global combination of
product, technology, infrastructure and people capabilities will bring
compelling, integrated solutions to our clients and allow for greater
operational efficiency.”
IMS Health expects to finance this acquisition through a mix of cash on
hand and existing credit facilities, with no material impact on its
leverage ratio.
The proposed transaction is subject to works council information and
consultation requirements in certain countries, as well as customary
regulatory and other closing conditions. Closing is anticipated in early
2015.
As a result of the anticipated timing, IMS Health’s 2014 full-year
guidance provided during the company’s first-quarter earnings call is
unchanged. Post closing, the transaction would be immediately accretive
to Adjusted Net Income and Adjusted Earnings Per Share. Previously
announced medium-term guidance of growth rates in the mid-single digits
for revenue and 1.5x revenue growth for Adjusted EBITDA would remain
unchanged following the transaction.
Conference Call and Webcast
IMS Health’s management team will host a conference call and webcast to
discuss the proposed transaction at 8:30 a.m. Eastern Time on June 25.
Interested parties are invited to listen to the live event via webcast
on IMS Health’s Investor Relations website at http://ir.imshealth.com.
The discussion also will be available by dialing +1-800-771-6916 in the
U.S. and Canada, or +1-212-271-4657 for international callers. A replay
of the call and webcast will be available on the company’s Investor
Relations site at http://ir.imshealth.com
following the live call.
For the purposes of this press release, the currency exchange rate
used to convert Euros into U.S. dollars is $1.35.
Non-GAAP Measures
This press release refers to certain “non-GAAP Measures,” including
Adjusted EBITDA/Adjusted Net Income and Adjusted Earnings Per
Share. These non-GAAP Measures have not been prepared in accordance with
U.S. GAAP and will differ from U.S. GAAP net income and earnings per
share, respectively, in ways similar to those described in the
reconciliations in the company’s earnings press release for its 2014
first quarter. Please refer to the Investor Relations section of our
website (www.imshealth.com)
and to our public filings with the U.S. Securities and Exchange
Commission for a copy of this earnings press release and related
information. IMS Health routinely posts information that may be
significant for investors in the Investor Information section of its
website, and encourages investors to consult that section regularly.
Forward-looking Statements
This press release includes “forward-looking statements” made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995 including statements we make regarding completion and
expected benefits from the proposed acquisition of Cegedim’s information
solutions and CRM businesses. The words “believes,” “expects,” “may,”
“will” and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain these
identifying words. Forward-looking statements are not guarantees that
the future results, plans, intentions or expectations expressed or
implied will be achieved. Matters subject to forward-looking statements
involve known and unknown risks and uncertainties, including regulatory,
competitive and other factors, which may cause actual financial or
operating results or the timing of events to be materially different
than those expressed or implied by forward-looking statements. Important
factors that could cause or contribute to such differences include, but
are not limited to, the successful completion of the transaction and our
ability to successfully integrate Cegedim’s information solutions and
CRM businesses, and the factors set forth in the “Risk Factors” section
of our registration statement on Form S-1 on file with the SEC, our Form
10-Q for the period ending March 31, 2014 and any subsequent SEC
filings. We disclaim any obligation to update any forward-looking
statements as a result of developments occurring after the date of this
press release, and you should not rely on those statements as
representing our views as of any date subsequent to the date of this
press release.
About IMS Health
IMS Health is a leading global information and technology services
company providing clients in the healthcare industry with comprehensive
solutions to measure and improve their performance. By applying
sophisticated analytics and proprietary application suites hosted on the IMS
One intelligent cloud, the company connects more than 10 petabytes
of complex healthcare data on diseases, treatments, costs and outcomes
to help its clients run their operations more efficiently. Drawing on
information from 100,000 suppliers, and on insights from more than 45
billion healthcare transactions processed annually, IMS Health’s
approximately 10,000 employees drive results for healthcare clients
globally. Customers include pharmaceutical, consumer health and medical
device manufacturers and distributors, providers, payers, government
agencies, policymakers, researchers and the financial community.
As a global leader in protecting individual patient privacy, IMS Health
uses anonymous healthcare data to deliver critical, real-world disease
and treatment insights. These insights help biotech and pharmaceutical
companies, medical researchers, government agencies, payers and other
healthcare stakeholders to identify unmet treatment needs and understand
the effectiveness and value of pharmaceutical products in improving
overall health outcomes. Additional information is available at www.imshealth.com.
IMSFIN
Source: IMS Health