German Equity Partners IV, a fund managed by the independent German private equity firm ECM Equity Capital Management GmbH has acquired the MediFox Group. Headquartered in Hildesheim, the business is comprised of three subsidiaries: MediFox, a provider of specialised software solutions for ambulatory nursing care service providers and nursing care homes in Germany; BFS Abrechnungs GmbH an invoicing and factoring service provider in the German nursing care market and CareNavigator GmbH, a specialised web portal which facilitates the exchange of health data among care providers, physicians, patients and relatives.
Fund managed by ECM acquires MediFox Group in ownership succession-driven transaction
Leading software provider in German nursing care market intends to further develop its successful business model and realise growth potential under new ownership
Founder of MediFox Group withdraws following successful strategic positioning of the company
Second investment by the GEP IV fund which commenced investing in October 2012
Frankfurt, May 7, 2013 – German Equity Partners IV (“GEP IV“), a fund managed by the independent German private equity firm ECM Equity Capital Management GmbH („ECM“), has acquired the MediFox Group, headquartered in Hildesheim, in partnership with the company’s management in an ownership succession transaction. The founder and majority shareholder, who has successfully developed MediFox Group to become the leading software provider in the market for nursing care in Germany, will withdraw from the business. Already in 2010 he transferred responsibility for daily operations to the current Managing Directors Christian Städtler and Dr. Thorsten Schliebe. As part of the transaction the management team of the MediFox Group has acquired a significant equity stake in the company. Size of the shareholding, purchase price and further details of the transaction were not disclosed.
Overview of MediFox Group
The MediFox Group is comprised of three subsidiaries: MediFox GmbH is the leading provider of specialised software solutions for ambulatory nursing care service providers and nursing care homes in Germany. BFS Abrechnungs GmbH is the second largest invoicing and factoring service provider in the German nursing care market. CareNavigator GmbH operates a specialised web portal which facilitates the exchange of health data among care providers, physicians, patients and relatives
Market leading position through specialised software
The complexity of reimbursement regulations in Germany and requirements for documentation of care services make it increasingly attractive for nursing care service providers to use specialised software solutions. For almost 20 years MediFox has specialised on the development and marketing of software solutions for nursing care service providers in Germany. In its core product area, software, MediFox currently holds a market share of approximately 40 per cent in the ambulatory sector. In the stationary nursing care sector, in which the company has been active since 2011, MediFox has shown continuous growth and is now one of the leading software providers.
The care market in Germany is expected to realise steady long-term growth based on underlying demographic trends. There are currently approximately 2.5 million patients and roughly 23,000 care providers in Germany.
Attractive growth potential through further development of the business model
Based on its leading position in software solutions for ambulatory nursing care providers the MediFox Group has a range of growth options. Apart from expansion of its customer base, the group aims to take advantage of its strengths in product development and sales as well as its product and IT know-how to further develop its business model.
Christian Städtler, Managing Director of MediFox GmbH, welcomes the partnership with ECM and the GEP IV fund: “With the ECM managed fund we have found a partner who has invested in our growth strategy.” Dr. Thorsten Schliebe, Managing Director of MediFox GmbH added: “We have set market standards with our specialised and user-friendly software products for ambulatory and stationary nursing care homes. We are convinced of the potential for the continuous positive development of the MediFox Group. Together with our excellent team we expect to further grow the business and successfully access related markets.”
Axel Eichmeyer, Managing Director of ECM, added: “The MediFox management team has successfully developed the company in recent years. Based on its leading market position, a highly scalable business model and innovative service offerings we consider MediFox to be an attractive investment for GEP IV. We look forward to supporting this dynamic company in realising its growth potential.”
Investment and advisers
The acquisition of the MediFox Group is the second investment by the private equity fund GEP IV that commenced investing its EUR 230 million committed capital in October 2012. The fund is managed by ECM and aims to acquire majority shareholdings in mid-sized enterprises in the DACH region. GEP IV was advised in this transaction by KPMG (Finance & Tax) and SJ Berwin (Structuring). Legal advice was provided by Allen & Overy and commercial due diligence by Rothgordt & Cie. Axel Eichmeyer, Florian Kähler, Alexander Schönborn and Florian Thelenberg are responsible for the transaction at ECM. The owners of the MediFox Group were advised by ALLIANCE Merger & Acquisition and legal advice was provided by Renzenbrink, Raschke, von Knobelsdorff, Heiser (rrkh).
ECM Equity Capital Management GmbH (“ECM”)
An independent private equity firm, ECM is headquartered in Frankfurt am Main, Germany. ECM served or serves as the manager of/advisor to respectively the private equity funds German Equity Partners I-IV with aggregate capital under management in excess of EUR 650 million. The investment focus is on mid-sized companies in the manufacturing and service sectors in addition to the wholesale and retailing industries. Preferred acquisition targets are companies with revenues of EUR 20 million to EUR 250 million. The funds typically structure their investments as management buyouts. Investment opportunities arise from ownership succession situations with privately held companies and from corporate divestitures.
Further information at: www.ecm-pe.de About MediFox Group (“MediFox“)
Since the 1990s the MediFox Group, headquartered in Hildesheim, has been the partner for all questions around software solutions for ambulatory nursing care service providers and stationary nursing homes in Germany. The group comprises of MediFox GmbH, the leading provider of specialised software solutions for ambulatory nursing care service providers and nursing care homes in Germany, BFS Abrechnungs GmbH, the second largest invoicing and factoring service provider in the German care market, as well as CareNavigator GmbH, a specialised web portal which facilitates the exchange of health data among care service providers, physicians, patients and relatives. For approximately 20 years the company stands for quality, excellent know-how of its employees and a close partnership with its customers. MediFox is the most successful software for nursing care service providers in Germany. More than 5,000 customers trust the software of the German market leader.
Further information at: www.medifox.de
On behalf of ECM:
Charles Barker Corporate Communications GmbH Kornelia Spodzieja, phone +49(0)69 794090-40, Kornelia.Spodzieja@charlesbarker.de Tobias Eberle, phone +49(0)69 794090-24, Tobias.Eberle@charlesbarker.de.