IMS Health has paid €385m to acquire several of Cegedim’s information solutions and customer relationship management (CRM) businesses.
The deal is expected to be competed in early 2015 at which point IMS Health, which provides information and technology services to the healthcare industry, will take control of a Cegedim CRM portfolio that covers 80 countries as well as a database featuring information on 13.7 million healthcare professionals across the world.
The acquisition, which is to be financed through a mixture of cash and credit facilities, also includes information solutions services that use primary market research.
All told, these business achieved revenues of €424m during 2013 and earnings before tax of €64m. In terms of personnel, more than 4,500 Cegedim employees will make the move to IMS Health, covering a range of information and technology skills including software development, mobile apps and analytics.
Ari Bousbib, chairman and CEO at IMS Health, explained the services acquired from Cegedim were complementary to IMS Health’s existing offerings.
“The global combination of product, technology, infrastructure and people capabilities will bring compelling, integrated solutions to our clients and allow for greater operational efficiency,” said Bousbib.
In a conference call concerning the deal, Cegedim said it was a “response to the significant market changes in the pharmaceutical industry”.
It added the transaction “will provide flexibility to a strategic refocusing on attractive market such as software and databases for healthcare professionals, insurance companies, HR services and e-business activities”.
The deal leaves Cegedim with a set of businesses with annual revenues of around €478m and earnings before tax of €92m. This includes a wide set of services for healthcare professionals and the company’s Cegedim Assurance division, which provides services to healthcare insurance firms.
The decision to acquire the Cegedim businesses follows IMS Health’s acquisition of HGS Europe at the end of last year, a move that allowed it to expand its market access capabilities in the UK and Ireland and enhance its ability to engage with the NHS.