May 2022: Healthcare M&A Snapshot

This snapshot summarises the key mergers & acquisitions, private equity and venture capital transactions across the UK healthcare sector in May 2022.

A PDF copy of the report can be downloaded here:

Notable Sector Deals

Lonsdale’s acquisition of Today’s Dental, a group of eight practices, creates another buy and build platform within the sector
Driven by an experienced team with expertise in executing serial acquisitions, the business will be well placed to build a pipeline of deals for future growth
The deal outlines the continued attractiveness of the UK dental sector for private equity investors
Despite consolidation occurring over a number of years, there is still ample opportunity for inorganic growth and the creation of scale within a relatively short timeframe due to the number of independently owned practices

A strategic acquisition for Vita Health, strengthening its provision of NHS MSK services to extend across six regions
Adding a team of over 90 clinical staff, Pennine MSK specialises in orthopaedics, rheumatology and persistent pain around the Oldham area
With over 20 million people in the UK living with an MSK condition and over £5bn spent by the NHS annually on treatment, this is a large market with strong growth drivers
The deal bolsters Vita’s NHS contracts and further acquisitions across the sector are likely in due course as larger players look to expand their footprint and capitalise upon organic market growth

An interesting transaction given the aesthetic market’s transition towards a more regulated environment
Derma Medical is a multinational training provider for non-surgical aesthetic treatments, providing medical professionals with recognised qualifications in non-invasive injectable procedures
With a forecast CAGR of 9.6% in the global facial injectables market and a growing focus on suitably trained professionals, Derma Medical will be ideally placed to benefit from these sector tailwinds
Peal’s funding will be utilised to support the next phase of international expansion for the business

The acquisition of Champion Health, a workplace health platform, bolsters Physitrack’s presence in the buoyant corporate wellness market
By combining Champion with it’s existing subscription-based wellness offering, Access, Physitrack is building a comprehensive health and wellness product for SMEs and larger enterprises
Day one consideration of £2.5m represents a revenue multiple of c.7x, with a further earnout worth up to c.£7.9m based on future financial targets
Following its listing on the Nasdaq OMX First North market, Physitrack has been aggressive in its M&A strategy as it looks to expand its service offering and geographical presence rapidly

*Day one consideration with an earnout worth up to c.£7.9m

Target	Description	Lead Investor	Investment
Inovus	Surgical training technology	Norgine Ventures	$7m
MyMynd	Workplace wellbeing platform	Triple Point Ventures	£650k
Nebu-Flow	Surface acoustic wave nebulisers	Foresight Williams	£1.7m
Zapped Skin	Tele-dermatology Platform	Jenson Funding Partners	£220k