LONDON, UK: Eden AcquisitionCo Limited, a company funds advised by Permira Advisers LLP, agreed to take over Ergomed Plc at the rate of 1,350 pence in cash. The acquisition values Ergomed’s entire issued and to be issued ordinary share capital at approximately £703.1 million.

The acquisition value also provides an implied Ergomed enterprise value multiple of approximately 24.0x its Adjusted EBITDA of £28.4 million (on an IFRS 16 basis) for the year ended 31 December 2022, and an implied Ergomed enterprise value multiple of approximately 21.0x its forecast Adjusted EBITDA of £32.4 million (on an IFRS 16 basis) for the year ending 31 December 2023, which the directors of Ergomed believe is highly attractive and at the high end compared to relevant public precedent transactions.

Permira believes Ergomed is a differentiated platform in the outsourced pharma services sector with a strong track record in the Pharmacovigilance (“PV”) and Contract Research Organisation (“CRO”) spaces.

Ergomed operates in structurally growing markets, benefitting from tailwinds of increasing complexity, regulatory requirements and outsourcing rates.

Permira believes that Ergomed has built a strong PV business with an excellent reputation for medical and scientific expertise, as well as a specialised CRO business, which is well-positioned to compete in attractive therapeutic areas against mid-sized and large CROs.

Permira recognises the strong progress that the management team have made in recent years, including the strengthening of both CRO and PV capabilities through acquisitions. However, Permira believes Ergomed is better able to achieve its long-term growth potential as a private company than as a public company.

Permira Advisers LLP is well positioned to support Ergomed’s next phase of growth by investing into the commercial expansion and technological transformation of the business as well as providing, where needed, additional capital to undertake transformational M&A.

Permira has a strong track record in the Healthcare sector deploying capital and expertise into growth-orientated businesses and supporting their management teams in achieving their strategic ambitions.

Permira has accumulated deep industry-specific knowledge and a strong network in the Healthcare space, particularly within the pharma and pharma services sector, allowing it to support driving the next phase of growth for Ergomed.

Commenting on the acquisition, Silvia Oteri, Partner and Head of Healthcare at Permira said: “We are delighted to be announcing this recommended cash acquisition of Ergomed, a high quality, medic-led and fast growing pharma services platform. We look forward to partnering with the Ergomed management team in accelerating Ergomed’s growth and fulfilling its vision of becoming the leading pharmacovigilance and rare disease clinical development partner to pharma and biotech clients to safely commercialise complex and often life-saving therapies for patients. Miro and his team have built a very strong foundation and as we look to the next phase of Ergomed’s growth, we will continue to support commercial expansion, new capabilities and technological innovation, via investments into the business as well as transformational M&A.”

Miroslav Reljanović, Executive Chairman of Ergomed said: “Since IPO, Ergomed has grown significantly to become a global, geographically diversified player in the CRO and PV sectors. This journey has delivered significant value for shareholders through consistent growth in revenue, EBITDA and free cash flow.

“We believe the Acquisition by the Permira Funds now represents an excellent opportunity for Ergomed shareholders to realise value at a highly attractive valuation and at the same time allow Ergomed to most effectively deliver against its ambitious growth strategy.

“Private ownership by funds advised by Permira, a highly-experienced healthcare investor with a track record of building successful UK-based, global businesses, will allow us to build on the foundations we have created. It also brings with it opportunities to access their operational expertise, global network and capital. As a result, we believe the Acquisition will significantly increase our ability to invest in our commercial infrastructure, technology transformation and to execute transformational M&A, in both the CRO and PV businesses. We are therefore unanimously recommending it to our shareholders.”