Court Square wins auction for WindRose’s Medical Knowledge Group

The deal concludes a Harris Williams-run process for the medical communications firm.

Court Square Partners has clinched a deal for WindRose Health Investors’ Medical Knowledge Group, concluding a robust sales process for the data-driven healthcare marketing and communications firm, PE Hub has learned.

The anticipated transaction has not been formally announced, however two sources said the deal commanded an enterprise value of approximately $330 million, or 13x Ebitda.

WindRose, a New York-based healthcare private equity firm, retained Harris Williams for financial advice on the sale, PE Hub first reported in July.

The pending transaction comes a little more than two years after WindRose, then called MTS Health Investors, recapitalized Medical Knowledge Group.

WindRose’s August 2017 investment provided an exit for Chicago’s CIVC Partners, which completed a $36 million equity investment in Medical Knowledge Group in January 2008. Existing management maintained a minority ownership position in the company, an announcement at the time said.

New York’s Medical Knowledge Group was founded in 2004 by CEO Leon Behar and Ed Lazarowitz.

The company offers analytics- and data-driven marketing and consulting services to clients ranging from niche biotech and diagnostic companies to some of the world’s largest biopharma players.

Broadly, the medical communications market has seen an uptick in PE investment over the last several months.

In relevant activity, New Mountain Capital in May bought W2O from Mountaingate Capital. Financial terms weren’t disclosed, but the firm said in an announcement that it anticipates revenues of more than $200 million in 2019 with nearly 800 people.

W2O since that time has expanded its offerings, striking add-on acquisitions for Radius Digital, ISO.health and Arcus Medical.

Elsewhere, Amulet Capital Partners’ OPEN Health in October merged with Pharmerit International, which provides health economics and outcomes research and strategic market access. The deal concluded an Edgemont Partners-run process.

Other notable players include JLL Partners- and Water Street Healthcare Partners-backed Eversana, which focuses on pharma commercialization services; Welsh, Carson, Anderson & Stowe-backed MMIT, which provides data and analytics to pharmaceutical and managed care companies; Parthenon Capital Partners’ Trinity Partners, a commercialization strategy and analytics firm for life sciences companies; and in Europe, LDC Ltd’s Fishawack Group.

A Court Square spokeswoman and WindRose declined to comment. Medical Knowledge Group’s Behar and Harris Williams didn’t immediately return requests for comment on Wednesday.

Action Item: Check out Court Square’s latest Form ADV: https://bit.ly/33RrCfw