CVC acquires System C – report

The firm is currently investing from its seventh-generation fund, which closed on €21.3bn in July 2020.

The asset was sold for more than 20x EV/EBITDA based on an EBITDA figure of £12m, according to sources speaking to Mergermarket.

William Blair advised on the sale process, in which System C was pitching March 2021 figures of £80m in sales and £15m in EBITDA.

The vendor, Symphony Technology Group, is a Palo Alto-based private equity firm.

Previous funding
Barclays Ventures invested £2m in System C Healthcare for a significant minority stake in 2001. A number of the company's existing private shareholders invested alongside Barclays to complete the fundraising.

Barclays Ventures led a £1.2m fundraising round for System C in 2003. A number of the company's existing private shareholders invested alongside Barclays to complete the fund raising.

Barclays Ventures led a £3m financing round for System C in 2004. Barclays Bank provided debt funding to facilitate the transaction.

Barclays Ventures exited the business with a 41% IRR in 2005, according to Unquote Data.

Symphony Technology Group acquired System C in June 2014.

Company
System C supplies IT systems and services to the UK National Health Service and the wider health and social care sectors. Based in Maidstone, Kent, System C's Medway suite of clinical and care management systems is used across 40 hospitals in the NHS and by the private sector. The company was founded in 1983.

In the financial year to March 2019, the combined System C group (including three subsidiaries) generated £60m in turnover, alongside £7.2m in EBITDA, as per Companies House filings.

Advisers
Company – William Blair (corporate finance).

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