This snapshot summarises the key mergers & acquisitions, private equity and venture capital transactions across the UK healthcare sector in June 2022.
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Notable Sector Deals
Lockwood Group's acquisition of Random42
A strategic acquisition for Lockwood, the US-based scientific-based medical communications specialists
Random42 is the market leading producer of scientific animation and digital media services for the pharma and biotech sectors
A highly complementary fit, allowing Lockwood to use Random42’s work to communicate complex messages in a simplified, visual way
The transaction represents a successful exit for Graphite who invested in 2017, after the company had initial backing from Vespa Capital
The medical communications market continues to see high levels of M&A activity and further consolidation will continue in the medium term
Dual acquisitions for Bayfields Opticians
Another two multi-site deals for Bayfields, the BGF-backed optical chain, with Robert Stanley and Prism Partnership joining the group
The acquisitions take Bayfield’s total number of sites to 41, expanding its presence in Oxford and the North West
Following BGF’s investment in 2020, the business set an ambitious target of expanding to 50 sites by 2023 and appears on track to deliver this
Bayfields remains one of the most active consolidators in the market, with other private equity-backed players such as Hakim Group (All Seas Capital) and Duncan & Todd (LDC) also expanding through acquisition
Acquisition of EMIS Group by United Health Group
A significant deal for US corporate United Health Group, expanding its core UK operations operated under the Optum brand
EMIS Group specialises in healthcare software and IT services to the NHS, with a focus on primary care and pharmacy systems
Pricing of £1.24bn represents an impressive multiple of 24.8x 2021 adjusted EBITDA and a 49% premium to the closing share price at the time of offer
With the ongoing focus on digitalisation within the NHS as a method of increasing efficiency and dealing with backlogs, this is a logical deal for Optum
Further transactions across the sector are likely, as innovative technology providers are snapped up by larger players to capitalise on market growth
Wickham Micro's acquisition of MET
Medical Engineering Technologies
(“MET”) provides medical device testing services to ensure the effectiveness and safety of equipment
The acquisition represents significant expansion for Wickham Micro, the contract testing laboratory, which was acquired by Limerston Capital through a carve out from Wickham Laboratories
With the goal of building a global market leader in medical device safety testing, the deal is the first step in an acquisitive growth plan
Given the fragmented nature of the UK, EU and US markets, further deals are likely for the business as it expands its service offering further
Healthcare Market Activity
Private Equity Activity
Sub-sector | Target | Acquirer/Investor | Exiting PE |
Labs | Medical Engineering Technologies | Wickham Micro (Limerston) | N/A |
Medtech | Random42 | Lockwood Group | Graphite |
Pharma Services | CatSci | Keensight Capital | N/A |
Opticians | Robert Stanley / Prism Partnership | Bayfields Opticians (BGF) | N/A |
Dental | Prettygate Dental | Riverdale (Apposite Capital) | N/A |
Medtech | Mirada Medical | Apposite Capital | N/A |
Venture Capital Activity
Target | Description | Lead Investor | Investment |
Holly Health | Digital health coach for sustainable change | Kima Ventures | £1.4m |
Arquella | Cloud-based nurse call system for adult care | Mercia Traditum PE | £850k |
Birdie | Home healthcare tech platform | Sofina | $30m |
Proximie | Global health technology platform digitally connecting operating rooms | Advent Life Sciences | $80m |
Biocaptiva | Cell-free DNA capture device to tranform liquid biopsy testing for cancer management | Archangels | £2.1m |
Radar Healthcare | Healthcare safety and compliance technology provider | 24 Haymarket | £9m |