With this acquisition Health in Code achieves its goal of doubling its size in three years

• This is Health in Code’s first acquisition since 2020 when it was created through the merger of three leading companies in the clinical genetics sector in Spain: Imegen, Genycell Biotech, and Health in Code
• Since 2020, Health in Code has delivered organic annual growth of more than 20%
• Health in Code’s expansion plans include the acquisition of other genomic diagnostics companies in Spain and the rest of Europe

Health in Code, a leading clinical genetic diagnostics company in Spain and an Alantra Private Equity portfolio company, has acquired genetic analysis laboratory Genologica to consolidate its leading position in Spain. Both parties have agreed not to disclose financial details of the transaction.

Founded in Malaga and with a strong presence in Andalusia, Genologica has more than 15 years of experience in genetic analysis for the prevention, diagnosis, assessment, and treatment of hereditary or genetic diseases. Its founders and main executives, Javier, José María and Daniel Porta, will continue to lead Genologica and will join Health in Code’s management team.

Health in Code is the result of the merger of three leading companies in the clinical genetics sector in Spain at the beginning of 2020: Imegen, Genycell Biotech and Health in Code. Alantra Private Equity is the majority shareholder of the Group, which includes among its shareholders the founding partners of the three former companies.

The acquisition of Genologica is the Group’s first add-on since its foundation and is in line with a buy-and-build strategy targeting companies or projects characterized by differentiation and clinical excellence.

Health in Code expects to reach €45m in revenues this year, of which approximately €4m will be contributed by Genologica. This represents an annual growth rate of more than 20% since 2020, doubling the initial size of the Group and demonstrating the sector’s strong growth.

The Group’s expansion plans include the acquisition of other medical genetics companies to complement its portfolio of services and products, as well as the organic development of new international markets based on a differential value proposition and unique technological capabilities. Health in Code currently has operational centers in Valencia, where it is headquartered, La Coruña, Granada and Malaga, employing more than 200 professionals. Last June, Health in Code installed the first NovaSeq X Plus in Spain, reaffirming its position as a leader in sequencing committed to whole genome studies.

Funds advised by Apax Partners LLP (“Apax”) and funds advised by Fremman Capital (“Fremman”) announced today that they have reached a definitive agreement to jointly acquire co-controlling stakes in Palex Medical (“Palex” or the “Company”). The selling shareholders are funds advised by Fremman, the current majority shareholder, and other minority shareholders.

Palex is the leading provider of high value-added medical technology (“MedTech”) equipment and solutions in Southern Europe. Following the transaction, Apax and Fremman will partner with Palex’s management team to help drive future value creation and pursue international growth.

Founded in 1955 and headquartered in Barcelona, Palex is the leading independent MedTech solutions provider in Southern Europe, focused on the marketing, sales and logistics of high value-added MedTech equipment for public and private hospitals and laboratories in Spain, Portugal and Italy. The Company has a strong reputation for innovation, quality and service and offers a wide product portfolio of over 150,000 product references from 600+ world-leading tier-1 manufacturers.

Xavier Carbonell, CEO of Palex, said: “We’re incredibly excited to continue our partnership with Fremman and to have secured the backing of Apax as a joint-lead investor for the next phase of our growth journey. Since 2007, the current management team has built Palex into a leading business that is trusted by the healthcare community, and I’m proud of our relentless focus on innovation, quality, and trust. We are very happy with the support that we have received, and will continue receiving from Fremman, which has allowed the Company to make the jump to become the leading provider of medical technology solutions in Southern Europe. By bringing a strong and experienced partner like Apax into our shareholder base, we expect to be able to further accelerate our growth, both locally and internationally. I’m confident we have the right strategic partners in place to execute on our ambitious plans and I’m excited for the future.” He also adds: “I would also like to take this opportunity to look back at all the successes achieved so far and thank Apheon and Corpfin Capital for their trust and involvement in the project”

Ricardo de Serdio, Founding Partner and CEO, Fremman Capital, added: “Since our entry in Palex in December 2021, we have pursued a clear strategy to support the Company in becoming an international leader in MedTech distribution. By leveraging our sector expertise, consolidation experience, and pan-European network, we have helped the Company complete 8 acquisitions – some of them transformational – across 4 countries, enter new geographies, and more than doubled the size of the business in less than two years. We are thrilled with the sale transaction and with our subsequent investment to continue supporting Xavier and the Company on this next phase of pan-European growth.”

Frank Ehmer, Partner, Apax, commented: “We couldn’t be happier to be partnering with Xavier and the wider Palex team, along with Fremman Capital. We have long identified the healthcare distribution sector as an ideal intersection between Apax’s deep expertise in MedTech and strong track record of investment in distribution-focused businesses. Throughout our engagement, it became immediately clear to us that Palex is a stand-out operator with the potential to establish itself as a pan-European leader. Palex has consistently outperformed over decades, with an unrivalled reputation and offering, and we look forward to building on this success to date, leveraging our experience and insights to help the team accelerate growth and execute on our joint vision for the future.”

The transaction is subject to customary closing conditions and is expected to close in Q4 2023. Financial terms were not disclosed.

Bank of America, Jefferies and Credit Suisse are acting as financial advisors on the transaction.

Pérez-Lorca and Uría Menéndez are acting as legal counsel to Fremman and management, Sullivan & Cromwell and Garrigues are acting as legal counsel to Apax. Dextra Corporate and Deloitte have participated advising the management.

-ENDS-

About Palex Medical

Palex, founded in 1955 by the Knuth family, is a company focused on the marketing, sales and logistics of high value-added MedTech equipment and solutions in the Spanish, Portuguese and Italian markets. The Company has a strong reputation for innovation, quality and service and offers a wide product portfolio (+150,000 references) from world-leading Tier-1 manufacturers (+600 partnerships) and own products across numerous therapeutic areas. Palex counts with ~928 employees, has an income forecast of 485 millions in 2023 and is headquartered in Sant Cugat del Vallès (Barcelona, Spain).

About Apax

Apax Partners LLP (“Apax”) is a leading global private equity advisory firm. For 50 years, Apax has worked to inspire growth and ideas that transform businesses. The firm has raised and advised funds with aggregate commitments of more than $60 billion. The Apax Funds invest in companies across four global sectors of Tech, Services, Healthcare, and Internet/Consumer. These funds provide long-term equity financing to build and strengthen world-class companies. For further information about Apax, please visit www.apax.com.

• BPEA EQT to acquire a majority stake in Indira IVF, the largest provider of fertility services in India and top five globally in terms of annual IVF cycles, having facilitated 125,000 successful pregnancies to date
• India is one of the fastest growing markets globally for Assisted Reproductive Technology  services due to its large addressable population, rising education levels and marriage age, declining fertility rates, and low market penetration
• BPEA EQT will invest in Indira IVF’s R&D capabilities and technology, while further broadening its footprint across India and exploring expansion into neighboring markets, making fertility services and reproductive health more accessible to couples

EQT is pleased to announce that BPEA Private Equity Fund VIII (“BPEA EQT”) has agreed to acquire a control stake in Indira IVF (the “Company”), from TA Associates and the Company’s founders, Dr. Ajay Murdia, Dr. Kshitiz Murdia, and Dr. Nitiz Murdia, who will retain a significant minority stake and continue to lead the Company.

Indira IVF was founded by Dr. Ajay Murdia in 1988 and has since then scaled from a single clinic to a nation-wide network spanning 116 centers across 20 states in India. Today, the Company is the market leader within Assisted Reproductive Technology services in India and completes approximately 40,000 IVF cycles annually, making it the largest player in India and amongst top five players globally. To date, Indira IVF has successfully supported over 125,000 couples in their journey towards achieving pregnancy.

India is one of the fastest growing markets globally for Assisted Reproductive Technology services and significantly underpenetrated compared to more developed markets. Infertility rates in India are estimated to be around 15 percent and they are expected to rise, driven by lifestyle changes, such as poor diets, stress levels and pollution. Today, India completes around 300,000 IVF cycles annually, and over the next decade, the number of cycles done across the country is expected to grow around 15 percent at a compound annual growth rate. This trend is supported by the rising awareness about infertility treatments, growing middle class, declining fertility rates, and increasing marriage age.

Ashish Agrawal, Partner at BPEA EQT, commented, “Fertility services and reproductive health is a large and fast-growing opportunity in India and Indira IVF is a pioneer in this space. We are truly impressed by its scalable and repeatable model with best-in-class medical infrastructure and technology systems that have the ability to help realize the dreams of couples who want to become parents. We see strong potential in further expanding India IVF’s presence across India and entering adjacent markets, while continuing to invest in its R&D capabilities and technology, drawing on EQT’s in-house expertise within healthcare and digitalization.”

Dr. Kshitiz Murdia, CEO of Indira IVF, commented, “Partnership with BPEA EQT is the beginning of a new phase of sustainable growth for Indira IVF. Starting from a single clinic in Udaipur to becoming the largest provider of Assisted Reproductive Technology services in India today, Indira IVF’s journey has been a remarkable success story. The ART sector in India is at an exciting stage of development and we are lucky to have a great company, partners, and colleagues to lead the growth of this segment. BPEA EQT is one of the largest healthcare investors globally and has a deep understanding of the IVF sector. We, at Indira IVF, are on a mission to provide world class IVF services to more couples with best-in-class clinical outcomes. I am delighted to have a like-minded partner in BPEA EQT who shares our purpose and we are ready to scale the Indira IVF platform to the next level.”

Jimmy Mahtani, Partner and Co-Head of BPEA EQT India, concluded, “This investment aligns with EQT’s commitment to investing in companies that address critical societal needs and have the potential to impact people’s lives for the better. Under the stewardship of the founding Murdia family and the management team, Indira IVF has scaled to become a leader that has helped more than a hundred thousand couples achieve parenthood. We couldn’t be prouder to support such an important mission and we look forward to partnering with Indira IVF and the Murdia family on its next stage of growth.”

BPEA EQT was advised by JSA (legal), Lincoln International, Price Waterhouse & Co LLP (transaction and tax, operational DD), Deloitte (financial and tax DD, structuring, ESG), and Awelin (digital). The selling shareholders were advised by Goldman Sachs and J.P. Morgan.

With this transaction, BPEA Private Equity Fund VIII is expected to be 35-40 percent invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication).

Contact
EQT Press Office, press@eqtpartners.com

About BPEA EQT
BPEA EQT is part of EQT, a purpose-driven global investment organization in active ownership strategies. BPEA EQT combines the private equity teams from Baring Private Equity Asia (BPEA) and EQT Asia, creating a comprehensive Asian private equity presence with local teams in eight cities across the region, a 25-year heritage, and more than USD 25 billion of capital deployed since inception. In addition to BPEA EQT, EQT’s strategies in the region include EQT Infrastructure and the real estate division EQT Exeter.

More info: www.eqtgroup.com/private-capital/bpea-eqt
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About Indira IVF
Indira IVF is India’s largest fertility chain expert with 115+ centers across the country. We are supported by a passionate workforce of 2700+ professionals and 250+ IVF specialists. Indira IVF has helped more than 1,25,000 couples battle their infertility issues and successfully get pregnant through IVF. We are a technology-first company and have invested in several technologies such as RI witness technology, closed working chambers technology, artificial intelligence (AI), microfluidics, and more. It is by means of empathy and meticulous standardization processes that we have been able to attain industry leading success rate, making Indira IVF the most preferred fertility chain of hospitals in the country.

More info: www.indiraivf.com 
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