Nordic wins ArisGlobal auction in nearly $800 mln deal

  • Follows Dassault’s $5.8 bln deal for Medidata
  • Jefferies process aimed strictly at financial sponsors
  • Nordic bought Orchid Orthopedic Solutions in January

Marking its second U.S. healthcare investment of the year, Europe’s Nordic Capital is buying ArisGlobal in a deal valuing the drug-safety software company just south of $800 million, according to two sources familiar with the matter.

The investment, announced in a Monday news release, concludes a competitive sales process aimed exclusively at financial sponsors, the sources said.

Jefferies provided financial advice to ArisGlobal on the transaction, they said.

The transaction comes just days after ArisGlobal’s larger peer, Medidata, agreed to be acquired by French technology company Dassault Systemes for $5.8 billion, or just north of 9x revenue.

ArisGlobal generates approximately $100 million in annual revenues, the Monday announcement said, suggesting a revenue multiple approaching 8x.

Strategics were excluded in the ArisGlobal process in part due to a preference among management, led by CEO Sankesh Abbhi, to retain a significant minority stake in the company, one of the sources said. Founder Deepak Abbhi serves as chairman.

ArisGlobal, with global headquarters in Miami and locations across Europe, India, Japan and China, offers Software-as-a-Service for the global life-sciences industry.

Its software and technology helps life sciences companies, contract research organizations and government health authorities improve efficiency, drive cost savings and assure compliance during the drug development process.

ArisGlobal’s LifeSphere platform is focused on four main areas: pharmacovigilance, drug safety, regulatory affairs and clinical development and medical affairs.

Nordic is investing out of Fund IX, which raised just over 4.3 billion euros in May 2018.

For Nordic, the deal falls at the nexus of healthcare and technology, two industries in which the firm has actively invested.

It also represents its second U.S.-based healthcare bet this year following the January acquisition of Holt, Michigan, Orchid Orthopedic Solutions.

Financial terms weren’t disclosed, but sources previously suggested the provider of outsourcing services in the orthopedic implants industry could command a deal valued upward of $1 billion.

The company in 2016 acquired ERT, a global eClinical services provider, from Genstar Capital. Sources at the time said the Philadelphia, Pennsylvania, company fetched a roughly $1.8 billion valuation.

Action Item: Check out Nordic’s latest Form ADV: