EQT buys biotech company Igenomix from Charme

Unquote understands that the deal gives the company an enterprise value of around €400m, which equates to 20x its 2018 EBITDA.

In addition to Charme's stake, EQT also bought the 15% stake owned by Amadeus Capital, which exited the investment, Unquote understands.

The sale of its stake in Igenomix represents a 4x return on the investment for Charme, which will continue to back the company in select R&D initiatives and will retain a stake of between 5-10%, Unquote understands.

In addition, the management team, led by CEO David Jiménez, will reinvest in the business and continue to lead the company.

EQT intends to support Igenomix's international expansion, increase its investments in R&D and innovation, and further accelerate the company's growth.

The GP deployed equity from its EQT VIII fund, which hit its €10.75bn hard-cap in February 2018.

Igenomix is the first exit for Charme III, which is now around 75% deployed, Unquote understands. The fund held a final close in January 2017 on €645m, surpassing its initial target of €500m. 

Previous funding
Charme III acquired a 75% stake in Igenomix in July 2016. As part of the transaction, venture capital house Amadeus Capital Partners acquired a 15% stake in the business, alongside Madrid-based buyout firm Aleph Capital, which also acquired a minority holding.

Graham Snudden, co-founder of Cambridge-based genetic testing business BlueGnome, invested alongside the GPs and joined Igenomix's management board, while CEO David Jimenez and CSO Carlos Simón retained a combined minority stake. The company's co-founders, Antonio Pellicer and José Remohí, reportedly exited the business, selling their joint 60% stake, with co-founder Carlo Bertomeu selling his 5% stake.

Under Charme's ownership, Igenomix expanded into developed and emerging markets, strengthened its position in the US and opened new laboratories in seven countries: Canada, Argentina, UK, Italy, Turkey, Japan and Kuwait. Furthermore, the business doubled its revenues from €30m in 2016 to around €60m in 2018.

Company
Founded in 2011 as a spinout from Instituto Valenciano de Infertilidad (IVI), Igenomix specialises in advanced reproductive genetics IVF clinics. The company offers a diversified portfolio of testing and diagnostic services, including pre-implantation genetic screening; non-invasive prenatal tests; carrier genetic tests; pre-implantation genetic diagnosis; and endometrial receptivity.

Igenomix operates a global network of 15 laboratories across 13 countries, including two main labs located in Valencia and Miami. It provides its services to approximately 90,000 couples per year. The company generated EBITDA of €20m from revenues of €60m in 2018, Unquote understands.

People
Charme Capital Partners – Matteo di Montezemolo (founder, managing partner); Francisco Churtichaga (partner).
EQT Partners – Vesa Koskinen (partner); Carlos Santana (managing director, head of EQT Private Equity in Spain).
Igenomix – David Jiménez (CEO).

Advisers
Equity – PwC (corporate finance); Allen & Overy (legal).
Seller – Arcano Partners (corporate finance); Araoz & Rueda (legal).

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• Topics
• Buyouts
• Southern Europe
• Healthcare
• EQT
• Spain
• Secondary buyout
• Amadeus Capital