• Transaction completed after regulatory approvals
• CompuGroup Medical is now one of the leading providers of doctor information systems in the US market
• Product portfolios complement one another
• CGM's customer base and sales network continue to grow
• Investments planned in accelerated growth

Koblenz. CompuGroup Medical SE & Co. KGaA (CGM) is strengthening its international market position and rising to belong to the leading providers of Ambulatory Information Systems in the USA, with the acquisition of eMDs, an Austin, Texas based corporation. CompuGroup Holding USA, Inc., a 100 % subsidiary of CompuGroup Medical SE & Co. KGaA, successfully completed the reverse triangular merger under US law, making this growth opportunity possible. During the course of the closing, all of the company shares will be included in CGM's financial statements as of December 31, 2020.

The main products of eMDs are Ambulatory Information Systems and Revenue Cycle Management.

The acquisition price is around USD 240 million (EUR 203 million). The acquisition price will be financed from cash, current cash flow, and a temporary drawdown of the revolving multi-year loans in the low double-digit million-euro range. In the 2019/2020 fiscal year (ended on March 31, 2020), with more than 60,000 service providers, eMDs generated revenues of around EUR 81 million with an adjusted EBITDA of around EUR 12 million. eMDs currently employs around 1400 staff.

The new, strengthened CGM US company is intended to benefit from current growth in the health IT market in an accelerated manner and simultaneously make the dynamics of this sector in the USA accessible more quickly to all divisions of CompuGroup Medical. For this purpose, investments are particularly planned in the areas of electronic data interchange (EDI) and product development, which are already intended to be implemented in the coming months.

"With eMDs, we are taking our US business to a new dimension. Know-how, products and target markets excellently complement one another," says Frank Gotthardt, founder and CEO of CompuGroup Medical SE & Co. KGaA. The Group, which is domiciled in Germany, is one of the world's leading providers of eHealth solutions. "We are also expanding our sales network with another 100 partners through the acquisition. We are now even better and more broadly positioned, in order to take advantage of the current growth trend in the US market for health IT, for the benefit of patients and health professionals."

Benedikt Brückle, Senior Vice President Northern America of CompuGroup Medical SE & Co. KGaA, "I am looking forward to working with Derek Pickell and his team. We have consistently focused our company on growth and scale over the past years. With the acquisitions of eMDs and the acquisition of Laboratory Information System provider Schuyler House, also completed in December, this will allow us to grow at an above-average and profitable rate in the coming years."

Derek Pickell, CEO of eMDs, emphasizes in his comment: "The investment by CompuGroup Medical gives us all an additional push. With combined forces, we will offer solutions that help our customers, partners and employees to improve services - and thereby serve the health of all patients. I am looking forward to continuing the growth story of eMDs together with Benedikt Brückle and his team now as part of CompuGroup Medical and to advance it significantly stronger together."

About CompuGroup Medical SE & Co. KGaA
CompuGroup Medical is one of the leading eHealth companies in the world. With a revenue base of EUR 746 million in 2019, its software products are designed to support all medical and organizational activities in doctors' offices, pharmacies, laboratories and hospitals. Its information services for all parties involved in the healthcare system and its web-based personal health records contribute towards safer and more efficient healthcare. CompuGroup Medical's services are based on a unique customer base of more than 1.6 million users, including doctors, dentists, pharmacists and other health professionals in inpatient and outpatient facilities. With locations in 18 countries and products in 56 countries worldwide, CompuGroup Medical is the eHealth company with one of the highest coverages among eHealth service providers. Approximately 8,000 highly qualified employees support customers with innovative solutions for the steadily growing demands of the healthcare system (including the now counted employees of eMDs).

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