Investing.com -- Shares of CompuGroup Medical (ETR:COP1n) soared more than 31% on Monday after the company in a statement said 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 over recent trading prices.
The proposed offer price marks 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 an immediate value realization opportunity for shareholders while supporting CompuGroup Medical’s long-term growth strategy.
“Partnering with CVC will allow us to take advantage of greater growth opportunities, such as investments in inorganic growth and increasing our focus on cloud-based products and AI-powered solutions,” said Daniela Hommel, CFO of CompuGroup Medical 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.
CompuGroup Medical's management expressed optimism about the strategic alignment with CVC, emphasizing the potential for innovation and quality improvements to benefit both medical professionals and patients.
Key shareholders, including the founding Gotthardt family and related stakeholder Dr. Reinhard Koop, have committed to retaining their majority stake.
Together, they hold 50.1% of the company’s shares and have signed a strategic partnership agreement with CVC. Founder Frank Gotthardt will remain Chairman of the Administrative Board, while Daniel Gotthardt will continue as Chief Executive Officer.
CVC's tender offer is contingent on acquiring at least 17% of the free-floating shares and securing regulatory approvals, including antitrust clearance.
Upon completion, CVC and its partners will hold at least 67% of the company’s shares. A subsequent delisting of CompuGroup Medical is planned, with details to follow the tender offer's expected conclusion in the first half of 2025.
The acceptance period for the tender offer is expected to begin later this month, pending approval by the German Federal Financial Supervisory Authority.