Apax to make 3x on Genex Services sale

Apax Partners is poised to generate a 3x return on invested capital through the sale of Genex Services, according to a source familiar with the matter.

The European buyout shop is selling the provider of medical managed care for injured workers to Stone Point Capital — the same firm it bought Genex from less than four years ago.

Terms weren’t disclosed. SunTrust Robinson Humphrey advised Genex on both this sale and the previous.

Genex, Wayne, Pennsylvania, provides cost-containment services to workers’ compensation payers, managed-care specialists and risk managers. The company’s services include case management, independent medical exams, medical reviews and utilization management.

The company is led by CEO Peter Madeja and employs more than 2,900.

Stone Point, for its part, initially bought Genex in March 2007 from UnumProvident Corp. Terms weren’t disclosed but an SEC filing from that time showed that the Greenwich, Connecticut, firm spent about $56 million on Genex, Buyouts previously reported.

Genex under the Apax umbrella continued to grow through acquisitions. Since the 2014 deal the company has added M Hayes, ICM, CID Management, Alpha Review Corp, Med-Eval, OMAC, ECN and PRIUM.

Apax, for its part, also owns One Call/Align, which offers medical cost-containment services to U.S. workers’ compensation payers.

One Call competes with Medrisk, the company that TA Associates sold to Carlyle in a December deal valued north of $1 billion, Buyouts reported at the time.

Apax bought One Call from Odyssey Investment Partners in 2013.

An Apax representative declined to comment, while those with Stone Point couldn’t be reached.

Action Item: Check out Apax’s portfolio: www.apax.com/investments/all-investments/

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