Agfa ends talks with potential buyer
Friday, December 2, 2016
Agfa and CompuGroup Medical SE have ended discussions over the latter’s potential takeover bid.
German medical software company CompuGroup approached Agfa in October to indicate its interest in a potential acquisition.
The following month Agfa’s board of directors decided to engage in “non-exclusive discussions” with CompuGroup, taking into account the interests of its shareholders and other stakeholders.
In a statement released today (2 December) Agfa said: “Agfa and CompuGroup have reached an understanding today to not further pursue the discussions about the contemplated public takeover bid.”
The statement did not give a reason for the talks drawing to a close. In October, after the potential takeover was first mooted, Belgian financial paper De Tijd highlighted Agfa's €1.1bn pension liability as one of the major potential stumbling blocks to a deal.
Agfa’s share price fell by 20% following the announcement, down by €0.84 to €3.35 in early trading, though it has since risen to €3.46 at the time of writing.
Last month, Agfa released its Q3 results to 30 September 2016. Its group sales fell 5.4% year-on-year to €625m (£527m) but EBITDA rose 5% to €63m, which was largely attributed to efficiency improvements and favourable raw material prices.