GEP IV, a private equity fund managed by ECM, is selling its majority shareholding in MediFox to Hg, a specialist investor with a focus on software. MediFox is a leading provider of software solutions to outpatient and inpatient nursing care providers and therapy practices in Germany. As part of this transaction, the management will reinvest and maintain a significant equity interest in the company. The parties agreed not to disclose the terms of the transaction, which is still subject to customary approval by the relevant authorities.
Founded in 1994, MediFox is a leading provider of software solutions to over 6,000 ambulatory care services, elderly care homes and therapists in Germany. Its software solutions support nursing care providers with key services including resource and route planning, care and support documentation, management information systems, as well as billing, factoring and administration services. It is headquartered in Hildesheim, Germany and employs approx. 265 people.
Dynamic growth and broadened product offering during partnership with ECM
Together with management, GEP IV acquired MediFox in May 2013 in the context of an ownership succession. Since then annual sales have more than doubled to in excess of EUR 30 million. During the past five years the product and service offering has been significantly expanded. MediFox now also offers a product for physiotherapists, which is the company’s fourth vertical in addition to software solutions for outpatient and inpatient elderly nursing care providers as well invoicing and factoring services. In line with this dynamic growth, the number of employees has increased from approx. 150 to 265 today.
MediFox is a well-established player in a fragmented sector, showing a positive underlying growth trajectory underpinned by a ‘mission-critical’ product, a robust financial profile and a highly competent management team. With its highly attractive business model, the company is well positioned for further growth.
Axel Eichmeyer, Managing Director of ECM, said: “We are proud of our successful partnership with the MediFox management team. During the past five years, MediFox has grown significantly across all verticals. MediFox is a great company with an outstanding management team, a highly scalable business model providing innovative software solutions for the nursing sector. As such, MediFox is well-placed to enter the next phase of its growth together with Hg as an experienced new investor.”
Christian Städtler and Dr. Thorsten Schliebe, both Managing Directors of MediFox, said: “Over the past five years ECM was a truly entrepreneurial partner for us who fully supported our ambitious growth strategy. Together with Hg, we want to further strengthen and expand MediFox’s position as we continue our journey towards further growth.”
The sellers were advised in this transaction by GCA Altium (M&A), Milbank (legal) and KPMG (finance & tax). Axel Eichmeyer, Florian Thelenberg and Benedikt Müller were responsible for the transaction at ECM.
Founded in 1994, MediFox is a leading provider of software solutions to over 6,000 ambulatory nursing care service providers, nursing care homes and therapists in Germany. Its software solutions support nursing care providers with key services including resource and route planning, care and support documentation, management information systems, as well as billing, factoring and administration services. It is headquartered in Hildesheim, Germany and employs 265 people. Further information at: www.medifox.de