Cinven to acquire BioClinica for $1.4bn

October 2016 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

In a deal that will significantly boost its overall innovation and growth, BioClinica, a provider of specialised technology-enabled services supporting clinical trials, has agreed to be acquired by international private equity (PE) firm Cinven Ltd, in a transaction worth in the region of $1.4bn, including debt.

The definitive agreement will see Cinven acquire BioClinica from two other buyout firms, Water Street Healthcare Partners and JLL Partners. JLL Partners acquired BioClinica for $123m in 2013, then merged the company with CCBR-SYNARC, then owned by Water Street, in 2014.

Serving more than 400 pharmaceutical, biotechnology and medical device clients through a network of offices and medical facilities in the US, Europe and Asia, BioClinica’s highly respected management team has a long term vision to grow both organically and through strategic acquisitions. Indeed, since going private in 2013, BioClinica has achieved significant growth using this strategy.

“We are extremely excited about this new partnership with Cinven and see great things on the horizon for BioClinica,” commented BioClinica president and CEO John Hubbard. “We experienced tremendous growth under our prior partnership with JLL and Water Street, and look forward to leveraging the strategic leadership and investment that will come with Cinven. BioClinica is on a quest to accelerate and bring clarity to clinical trials, and this move will help us achieve these goals.”

Founded in 1977, Cinven operates from offices in Guernsey, London, Frankfurt, Paris, Madrid, Milan, Luxembourg, Hong Kong and New York, investing in six key sectors: business services, consumer, financial services, healthcare, industrials, technology and media and telecommunications. In the main, Cinven funds acquire companies that are based predominantly in Europe or have significant European operations, which require an equity investment of €100m or more.

Once Cinven’s healthcare team identified BioClinica as a ‘compelling investment opportunity’ based on its experience in the global clinical services market through its investment in Medpace, a leading contract research organisation (CRO) headquartered in Ohio, the PE firm took Medpace public in New York in June 2016 in a highly successful IPO. Cinven acquired Medpace in April 2014 for a total consideration of US$915m.

“Cinven’s global expertise, deep industry relationships and investment experience in the healthcare industry, including the CRO sector with Medpace, make us the ideal partner for BioClinica,” said Alex Leslie, a partner at Cinven. “This is an excellent opportunity to invest in a leading provider of technology-enabled services to the clinical trial industry with a collection of high growth businesses across the globe. We look forward to supporting John [Hubbard] and the exceptionally talented and experienced team at BioClinica to develop the business in the years ahead.”

Upon close of the proposed acquisition, which is expected in the fourth quarter of 2016, Dr Hubbard will continue as president and chief executive of BioClinica, while all executive officers will remain in their current positions reporting to Dr Hubbard.

Dr Hubbard continued: “Cinven is an ideal partner for BioClinica as both organisations have a strong focus on growth. Cinven is also known for its responsible approach toward portfolio companies, employees, suppliers, local communities, the environment and society. Cinven’s proven track record of success coupled with BioClinica’s passion, knowledge and innovation will help us realise the potential of this dynamic company.”

Incidentally, the acquisition of BioClinica by Cinven represents the first investment from the €7bn Sixth Cinven Fund, which was raised to acquire targeted companies where Cinven can strategically drive revenue growth both in Europe and globally, supported by its Pan-European office network and offices in New York and Hong Kong.

Jefferies LLC acted as exclusive financial adviser to BioClinica in connection with the Cinven/BioClinica transaction, which is subject to customary approvals.

Fraser Tennant