Hg exits Medifox Dan to trade for EUR 950m, nets 4x return

The sale reaps over a 4x return for Hg, according to a source familiar with the situation. 

The GP tapped Houlihan Lokey to run an auction in March this year, as reported.

It acquired the software company in 2018 via GBP 575m tech-focused buyout vehicle Hg Capital Mercury 2. 

Medifox Dan provides software solutions to the German care and outpatient sectors with its core offering comprising of resource and route planning, care planning, admin and billing. 

The company had sales of USD 83m in 2021 with a pro forma adjusted EBITDA of USD 35m, said buyer ResMed in a statement. 

Medifox's EBITDA has tripled under Hg's ownership, as reported. The GP has backed at least six add-ons, most notably DAN Produkte in January 2020. 

ResMed, a NYSE-listed medical devices and healthcare software group with USD 3bn in 2021 sales, acquired the asset for EUR 950m / USD 1bn. 

Price expectations were pipped to reach 25x EBITDA multiples with the auction attracting interest from large-cap sponsors including BC Partners, Warburg Pincus and Permira, as reported. 

The buyer said it will fund the acquisition from existing credit lines and that Medifox Dan is similar to its either Saas brands: MatrixCare and Brightree. 

The transaction is expected to close by Q2 2023. 

Advisors 
Hg - Houlihan Lokey (M&A)
ResMed - Evercore (M&A); DLA Piper (legal)

People
Medifox Dan - Thorsten Schliebe (CEO); Christian Städtler (managing director)
Hg - Stefan Margolis (partner); Benedikt Joeris (partner)
ResMed - Mick Farrell (CEO)

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