This is Sarah, back from vacation, feeling refreshed, and playing catch up. Hit me up with any juicy deal developments, people news or anything else in private equity land that I should know about!
It’s a quiet morning out there so far on the M&A front. But on Friday, one interesting transaction was revealed at the intersection of healthcare and tech. Welsh, Carson, Anderson & Stowe said it would merge Managed Markets Insight & Technology, or MMIT, with London-based Evaluate, which is owned by Hg. The merger creates a $1.6 billion global pharma commercial intelligence provider, an Hg announcement said.
WCAS’s partial sale of MMIT, which provides market access data, analytics and insights for the pharma industry, comes just a few weeks after a competitor, Breakaway Partners, was acquired by Komodo Health for an undisclosed sum. The MMIT process, one source recently told me, involved a limited group of participants. Other likely contenders, sources suggested, were private equity-backed strategics with deep pockets like GA’s CareMedx, a technology-enabled hub services platform that facilitates patient access to specialty medications.
WCAS and Hg will share joint control of the company upon the deal’s completion, with Evaluate CEO Deborah Kobewka continuing on in her role, as MMIT CEO Mike Gallup becomes CEO of the combined entity.
Joint-ownership deals and partnership transactions have long been a strategy pursued by WCAS. Consider Concentra-Select Medical, Kindred-Humana, Shields-Walgreens, and Identifix-SRS. As of January, more than half of WCAS XIII’s eight investments at that time were partnership deals, the firm’s Scott Mackesy told me then.
Munich- and London-based Hg, meanwhile, has been doing more in the US following the opening of its first US office in April 2019. (In recent activity, Hg earlier this month invested in Alpharetta, Georgia-based industrial automation business MDT Software.)
Materials: SK Capital Partners has acquired the Monomers, Polymers and European businesses of Deltech Holdings, taking a majority stake in the Baton Rouge, Louisiana-based business.
Deltech employs 135 people across its Baton Rouge headquarters and manufacturing facility, its additional manufacturing facilities in Troy, Ohio and Haverhill, United Kingdom, and its global field operations.
Consistent with its strategy, SK Capital invests exclusively in the specialty materials, chemicals, and pharmaceuticals sectors.
SK’s debut lower mid-market fund Catalyst Fund I closed on its hard-cap of $400 million in November 2019, while its latest flagship fund, SK Capital Partners V, closed on $2.1 billion in February 2019, more than twice the size of its $1 billion, 2014 predecessor, PE Hub affiliate Private Equity International wrote.
That’s it for me! Have a great week ahead, and as always, write to me at email@example.com with your comments, tips or just to say hello.