Big exits: MidOcean makes 8.5x on The Planet Group, Riverside’s Greenphire goes for ~$1.1b

MidOcean generates handsome return on The Planet Group, Riverside exits Greenphire for ~$1.1b as Thoma bets on future of clinical research

Happy Friday!

Note to readers: Your daily rundown on private equity and deal news will not run on Monday, May 31st in honor of the holiday. We’ll be back with regular scheduling on the following day!

Gains: MidOcean Partners’ deep roots investing behind human capital businesses is proving to be a winning strategy.

MidOcean produced an 8.5x return on investment for The Planet Group, exiting its majority stake through a sale to Odyssey Investment Partners’ ProPharma Group, according to an investor familiar with the transaction. With the sale, MidOcean generated an 88 percent IRR, the source told PE Hub.

For ProPharma, the acquisition is its second since Odyssey Investment Partners last year bought the compliance-related pharma services company from Linden Capital Partners.

The Planet Group appears to push ProPharma beyond life sciences and healthcare, as the company addresses the professional services needs of organizations in the life sciences, technology, diversified energy & engineering, accounting & finance, human resources, healthcare and digital marketing areas.

Read PE Hub’s full report.

Tech transforms pharma services: Elsewhere, Riverside Co just witnessed its biggest exit ever in terms of price. (That’s a good way to go into the long weekend!)

Reflecting private equity’s eagerness to participate in the technology-driven transformation of the clinical research industry, Thoma Bravo is buying Riverside’s Greenphire in a deal valued at approximately $1.1 billion, sources familiar with the deal terms told PE Hub.

Now under the backing of Thoma, one of the software industry’s most prolific investors, there’s opportunity to unlock much more growth at Greenphire, which provides payment workflow automation solutions within the clinical trial process – both for research sites and patients. The company’s top line has been growing at a more than 30 percent clip organically and that ought to persist, one person said, buoyed by the added likelihood of M&A with Thoma’s deep pockets.

Much white space lies ahead for Greenphire, which can continue to capture share in a market still largely dominated by manual, paper-based workflows. “It’s early in the adoption phase,” said Joe Manning, senior partner at Riverside, declining to comment on any financial metrics of the deal.

Greenphire has its hands on a treasure trove of site performance data that can ultimately be monetized. These factors and others stand up what appears to be a premium multiple for Greenphire. Check out my full report on PE Hub for financial metrics and more.

That’s it! Have a safe and relaxing weekend, everybody! In the meantime, don’t hesitate to hit me up at springle@buyoutsinsider.com with tips, comments or just to say hello!