EANS-News: CompuGroup Medical AG - acquisition of Visionary Healthware Group in USA

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Koblenz (euro adhoc) - CompuGroup Medical AG has today entered into an agreement
for the purchase of 100% of the shares in American Healthcare Holdings, Inc.,
Visionary Medical Systems, INC. and Visionary RCM, INC. ("Visionary Healthware
Group"). Visionary Healthware Group is a provider of practice management
software and electronic health records to approximately 10,000 office-based
doctors in USA, and also a vendor of laboratory information systems and revenue
cycle management services. Total sales in 2009 were about $28.0 million and
EBITDA was about $6.2 million, with 55% recurring revenues plus additional 20%
predictable and repeat revenues.

With a headquarter in Tampa, Florida, Visionary Healthware Group serves an
impressive customer base that spans the United States, covering healthcare
organizations, physicians´ offices and laboratories. The company was ranked #71
in the 2009 Healthcare Informatics Top 100 Healthcare Information Technology
Companies list and has 200 employees, led by an experienced management team
with significant domain knowledge.

This acquisition comes at a particularly exciting time in USA with the
Healthcare Information Technology Economic and Clinical Health Act (HITECH)
providing almost $20 billion to healthcare information technology aimed at
Visionary´s customer group. With 10,000 closely served doctors and a total
network of doctors estimated at up to 60,000 (including the LIS, managed care
consulting and RCM business), there are significant and untapped cross-selling
opportunities in Visionary Healthware Group based on the HITECH stimulus.

With this acquisition, CompuGroup Medical AG continues its strategy and growth
based on the greatest coverage among healthcare providers (physicians,
dentists, hospitals etc.) worldwide. The company, one of the leading global
providers of eHealth solutions, has this year placed particular emphasis on
increasing its presence in the United States and Frank Gotthardt, Chairman of
the Board of CompuGroup Medical AG, stated: "The US is a core market for
CompuGroup Medical. With the network of doctors now served through Noteworthy
and Visionary we are quickly moving up the ranks of healthcare IT companies in
USA. I am particularly excited about this accelerating development and l repeat
our commitment to do everything in our power to make the United States a key
future market for CompuGroup Medical."

The payment for all debt and equity in the entities acquired is expected to
total $44 million in cash plus an additional variable consideration over the
next 2 years of up to $21 million depending primarily on the continued growth
in number of users. The initial purchase price will be financed through cash at
hand and new long-term debt. The shares of the acquired entities will be held
by CompuGroup Holding USA, Inc., a wholly-owned subsidiary of CompuGroup
Medical AG. The closing of the transaction is scheduled for September 1st 2010.

Visionary Healthware Group will be consolidated in the Group accounts of
CompuGroup Medical AG beginning September 1st 2010. For the remainder of 2010,
the transaction is expected to increase Group revenue by approximately EUR 8
million with no significant effect on EBITDA net of transaction expenses.

Novahill Partners and its WestEnd Alliance affiliate, Wellness Business
Partners, served as financial advisors to CompuGroup Medical AG in this
transaction.

About CompuGroup Medical AG
CompuGroup Medical is one of the leading e-health companies worldwide. Its
software products, designed to support all medical and organizational
activities in doctors´ offices 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. The services of
CompuGroup Medical are based on its unique customer base of around 360,000
doctors, dentists, hospitals and networks as well as other service providers.
CompuGroup Medical is the e-Health company with one of the biggest coverage
among e-health service providers worldwide. The company operates in 14 European
countries as well as in Malaysia, Saudi Arabia, South Africa and in the USA and
currently employs around 2,800 people.

Conference Call for Journalists, Investors and Analysts:
The management board of CompuGroup Medical AG will go through the Visionary
Healthware Group acquisition at a conference for analysts and investors on
Tuesday, August 31st at 15:00 hours CEST. The conference will be broadcast live
via telephone (see the following list of telephone numbers). Its recording can
be replayed later.

You can participate in this conference call by dialing one of the following
phone numbers:
+49 69 210869703 (Germany)
+44 16 16018902 (UK)
+1 2153054495 (USA)
Participant code: 18561270

At the beginning of the conference call, a presentation will be made available
for download on the CompuGroup Medical website at www.cgm.com.

Further inquiry note:
CompuGroup Medical AG
Barbara Zörner
Consultant Press & Media
T +49 (0) 261 8000-1293
F +49 (0) 261 8000-3284
E-Mail: [email protected]
end of announcement euro adhoc
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issuer: CompuGroup Medical AG
Maria Trost 21
D-56070 Koblenz
phone: +49 (0) 261 8000-0
FAX: +49 (0) 261 8000-1166
mail: [email protected]
WWW: www.cgm.com
sector: Software
ISIN: DE0005437305
indexes:
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English

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