February 2023: Healthcare M&A Snapshot

View our snapshot of the key deals (M&A, private equity and venture capital) across the UK healthcare sector in February 2023.

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Notable Sector Deals: February 2023

System C’s acquisition of Clevermed

• An interesting deal for System C with the acquisition of Clevermed, a provider of electronic maternity and neonatal records

• Clevermed’s flagship product, BadgerNet, is used by nearly every neonatal unit in the UK, as well as numerous maternity units

• The acquisition enhances System C’s maternity offering, with the ultimate goal of delivering integrated digital solutions that span the entire patient journey from prenatal services to end of life care

• The deal highlights the continued interest from corporate acquirers in software providers delivering electronic patient records to the NHS

£10m investment into Dr Doctor led by YFM

• A significant funding round for Dr Doctor, the provider of digital care solutions which increase communication and engagement between patients and clinicians, managing 25% of NHS outpatient appointments

• With NHS backlogs at all time highs, Dr Doctor’s offering is key in driving efficiencies across NHS services, as well as providing better access to care

• The funding will be used to expand the business’ sales and development teams, make greater investment in the product and continue to scale services across the NHS

• The deal is another example of investor appetite for software and services which help to alleviate pressures on the NHS

Acquisition of Diamond Whites by Impress

• A significant deal for Europe’s leading chain of orthodontic clinics, Impress, acquiring Diamond Whites in a deal worth over €30m

• Founded in 2012 as a provider of teeth whitening products, London-based Diamond Whites has subsequently expanded into invisible aligners

• The acquisition will see Impress add oral care, whitening products and cosmetic dental treatments to its service offering, which will extend to over 60 cities across the UK

• The deal follows Impress’ $50 million Series A funding round in 2021, as the business has expanded its presence across Europe and the USA

Merger of E-Zec Medical and ERS Medical

• A significant merger between E-Zec Medical Transport and ERS Medical, creating the UK’s largest provider of specialist transport services to the NHS and local authorities

• The enlarged business serves more than 50 commissioning bodies with the support of 2,500 specialist employees, from 55 operational sites nationwide, generating revenues in excess of £100m

• The deal delivers considerable geographical expansion and creates the unequivocal industry leader

• The deal was funded by E-Zec’s incumbent investor Cairngorm Capital, with debt provided by Thincats

Healthcare Market Activity: February 2023

Private Equity Activity

Sub-sector	Target	Acquirer / Investor	Exiting PE
Aesthetics	Aesthetic Technology	Omni Partners	N/A
Dental	Byrnes Dental Laboratory	Corus (Care Ventures)	N/A
Dental	Diamond Whites	Impress (LBO France)	N/A
Digital Health	Dr Doctor	YFM Equity Partners	N/A
Dom Care	Stepping Stones Services	Optimo (Oxygen EP)	N/A
Medical Transport	ERS Medical	E-Zec (Cairngorm)	N/A
Residential Care	BN Care	BGF	N/A

Venture Capital Activity

Target	Description	Lead Investor	Investment
Doctify	Global platform for patient reviews	Beringea	$10m
Healistic	App for home delivery of medication within 45 minutes	N/D	£1m
Phlo	Digital pharmacy	Thairm Bio	£10m
ReadyGo Diagnostics	Diagnostics business that detects infectious diseases	Foresight	£1m
Re:course AI	AI platform for healthcare training	Par Equity	£3.5m
Syndi Health	Digital mental health platform for employees	Plug and Play Founders Factory	$2m
Vidivet	Remote vet appointments platform	Angel Investors	£310k