ECI sells CliniSys to Montagu, reaps 2.5x return

Ellie Pullen
05 July 2013

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ECI Partners has sold CliniSys, a provider of IT systems to the healthcare sector, to Montagu Private Equity, reaping a 2.5x money multiple on its investment.

The fresh funding from Montagu will be used to drive forward the international expansion of the company. According to Montagu, personalised medicine and an aging population have increased the demand for CliniSys's services within clinical laboratories.

Previous funding
ECI invested in CliniSys in April 2007. The firm led the £63m management buyout of the company, which included a £2m earn-out for the exiting founding shareholders, according to unquote" data. Investec provided a £7.5m mezzanine loan for the deal and Lloyds TSB Corporate Markets supplied a £30.75m senior debt facility.

CliniSys's revenues have more than doubled since ECI acquired the company, according to the GP.

Company
Founded in 1987, CliniSys is based in Chertsey with additional offices in Germany, France, Belgium and Spain. The company currently employs 120 staff and has forecast revenues of more than £34m for 2013.

CliniSys provides software to European clinical laboratories. The software allows its users to deliver test results and diagnostics to the healthcare industry. The company's services are currently used in 2,000 labs across 34 countries, serving more than 22,000 users.

People
Fiona Pearson is the CEO of CliniSys. Tom Wrenn is a partner and head of TMT at ECI, while Edward Shuckburgh is a director at Montagu. Sean Whelan, a managing partner at ECI, sat on the board of directors for the newco that was formed when ECI originally invested in CliniSys.

Advisers
Equity – Smith Square Partners (Corporate finance).