October 2022: Healthcare M&A Snapshot


The UK healthcare sector continues to show its resilience, with strong M&A and private equity activity in October.


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


A PDF copy of the report can be downloaded here:



Notable sector deals: October 2022


Acquisition of Veincentre by CBPE Capital

  • A successful exit for Palatine after scaling the Veincentre business from seven to 22 sites since their initial investment in mid 2019, with revenue increasing by over 180% during this period

  • Veincentre is a chain of accessible and convenient clinics for the treatment of varicose veins, a common health problem across the UK population

  • The business offers an affordable solution for patients, in an area where NHS funding is severely lacking

  • The deal is an example of private equity’s attraction to consumer-focused healthcare offerings, addressing common health issues which are currently underserved and underfunded by the NHS

Palatine’s investment into Redmoor Health

  • A busy month for Palatine with the exit from Veincentre, in addition to a new investment in digital healthcare service partner, Redmoor Health

  • The government has made clear that digitalisation of the NHS is a key priority, with £2bn of funding announced by Sajid Javid in June 2022

  • Redmoor is well placed to capitalise on this opportunity by providing a range of services to the NHS in support of digital transformation projects

  • Given these dynamics, providers of digital transformation consultancy services are clearly attractive to private equity at present, with Westbridge investing into Channel 3 Consulting in 2021. We therefore expect to see more deals in this area in the coming months

OutsideClinic’s acquisition of Bloom UK

  • A significant deal for OutsideClinic as it acquires the assets of Bloom from Denmark-based hearing aid manufacturer, WS Audiology

  • Bloom brings a 65-strong team to the OutsideClinic business, creating a team of over 170 across the combined audiology operations

  • The deal aims to consolidate OutsideClinic’s position as the largest and fastest growing provider of domiciliary eye and hearing care in the UK

  • OutsideClinic is owned by Optimism Health Group, a healthcare investment business funded by a range of international private investors and family offices

  • In an area of the market which has seen limited deal activity, OutsideClinic is well positioned to differentiate itself as a clear market leader

Acquisition of Templars by Dedicare

  • The acquisition of Templars Medical Agency by Dedicare, the Swedish staffing firm, provides a robust platform in the UK from which to expand

  • Templars, based in Skipton, specialises in the recruitment and staffing of doctors in the UK and Ireland

  • The deal was structured with day one consideration split between cash and shares in Dedicare, and an earnout based on future performance

  • With a severe staffing crisis across the NHS and social care sector, acquirers and private equity are seeking high quality healthcare recruitment operators

  • We expect to see further activity in this area, particularly around recruitment companies with a niche specialism


Healthcare market activity: October 2022


Private Equity Activity

Sub-sector

Target

Acquirer / Investor

Exiting PE

Clinical Services

Veincentre

CBPE Capital

Palatine

Dental

Tryst Dental

Clyde Munro (Synova)

N/A

Digital Health

Intershift

Agilio Software (August)

N/A

Digital Health

Redmoor Health

Palatine

N/A

Specialist Care

Deanston House

Swanton Care (Apposite)

N/A

Venture Capital Actiivty

Target

Description

Lead Investor

Investment

Blueskeye AI

AI for the analysis of medically relevant expressive behaviour

XTX Ventures

£3.4m

Get A Drip

Provider of intravenous nutrition therapy

Nigel Wray

$4.5m

Oxford Medical Simulation

Virtual reality training platform

ACF Investors

£2.1m

PBD Biotech

Rapid screening test for tuberculosis

Mercia Foresight

£2.4m

Silveray

Commercialising a material that makes x-rays more efficient

UKI2S

£2.2m