Arsenal increases investment in pharma company Certara with $449m stock purchase

Arsenal will acquire 30 million additional shares from EQT Private Equity at $15 per share.

  • Previously, Arsenal held a majority stake in Certara before selling a controlling interest to EQT in 2017
  • Arsenal continued to maintain a minority equity stake both before and after Certara’s IPO in 2020
  • When the transaction closes, Arsenal Operating Partner David Spaight will join the Certara board while current board members Eric Liu and Ethan Waxman of EQT will step down

Arsenal Capital Partners has increased its investment in Certara, a New Jersey-based pharmaceutical company with a $449 million stock purchase.

Currently, Arsenal owns about 4 percent of common shares in Certara and will acquire 30 million additional shares from EQT Private Equity at $15 per share.

When the transaction closes, Arsenal will own approximately 22% of diluted shares outstanding.

Arsenal previously held a majority stake in Certara before selling a controlling interest to EQT in 2017. Arsenal continued to maintain a minority equity interest both before and after Certara’s initial public offering in 2020.

Also, at the deal’s closing, Arsenal Operating Partner David Spaight is expected to join the board, and current board members Eric Liu and Ethan Waxman of EQT will step down from the board.

Stephen McLean, a senior partner of Arsenal, said in a statement, “This transaction reflects our long-term advocacy for, and conviction in, the strategic importance of biosimulation in drug development. It also reflects our belief in the long-term prospects of Certara, our admiration for William Feehery’s leadership, and our trust in the entire Certara management team. We look forward to our continued partnership with Certara and to further supporting its efforts to enable more efficacious development of therapies and cures for human disease.”

Certara’s clients include more than 2,000 biopharmaceutical companies, academic institutions, and regulatory agencies across 62 countries.

Arsenal Capital Partners invests in industrial growth and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds totaling over $10 billion.