TPG makes minority investment in EIS, CD&R bumps up price for UDG Healthcare

TPG bets on digital insurance platform and CD&R buys UDG Healthcare for $3.9 billion.

Happy Tuesday!

Today we bring you deal updates from the two most active spaces in the PE universe – tech and healthcare. To begin with, TPG’s Tech Adjacencies has injected a more than $100 million growth investment in EIS, a digital insurance platform, the parties told PE Hub.

According to TPG partner Nehal Raj, whose team previously led deals in insurance software providers Vertafore and CCC Information Services, there has never been a more opportune time to invest in the insurtech sector.

“I think covid-19 created additional urgency for digital transformation across many industries,” Raj said. “We see this in insurance, where companies are accelerating their investment in software and IT to better serve the evolving habits of their customers.”

The insurance sector is one of the largest end-markets globally and in the US, and it is also probably one that is most behind in terms of having modern software and cloud-based technologies, the investor said.

TPG’s minority investment in the insurtech provider is through its TPG Tech Adjacencies (TTAD) fund, which makes minority investments in leading tech verticals. The debut fund closed on $1.6 billion in May 2019.

Read about TPG’s deal rationale in Milana’s story on PE Hub.

Bump it up: CD&R increased its offer to UDG Healthcare, a London-listed pharmaceutical company, by 5.6 percent after its board of directors opposed the original bid.

The improved bid of $3.83 billion is supported by UDG’s largest shareholder, Allianz Global Investors, which criticized the initial offer as “opportunistic”.

The opposition reflects a wider concern that private equity companies are taking advantage of lower market valuations owing to Brexit and the pandemic to try and buy firms for less than they are worth, writes Bloomberg.

UDG, headquartered in Dublin, provides packaging services to the healthcare industry and is supporting clients in bringing covid-19 treatments and vaccines to market.

That’s it for today! Have a beautiful rest of the week and as always, hit me up with updates on deals, your comments, feedback or whatever at karishma.v@peimedia.com

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