Flexstone Buys Into Specialist Neuro Medical Group
Flexstone, the global co-investment specialist, has taken a stake in Natus Medical, a US medical company which focuses on disorders of the brain, neural pathways and nervous systems.
Flexstone, an affiliate of Natixis Investment Managers, invested $15m, with the deal valuing Natus’s total equity at around $1.2bn.
Natus was taken private after 20 years as a listed company on the Nasdaq exchange. “The lead sponsor, Archimed, and Flexstone believed taking Natus private would unlock strong growth, enabling it to access liquidity and undertake more agile decision-making,” said Clément Riviere, an investment director at Flexstone.
Natus makes equipment and provides software and services which help to diagnose and treat patients with brain disorders. Its main product groups are neuro diagnostics; neuro surgery; new-born care; hearing & balance.
“This is a large and growing subset of the healthcare industry,” said Riviere. The market is expected to grow in the mid-to-high single digit in the coming years. The drivers of growth are strong: ageing populations, growing demand from emerging markets, and the rise in traumatic brain injuries.
The deal is in the sweet spot of lead sponsor Archimed, a European-based healthcare-focused GP, which also has significant operations in the US. Archimed is particularly strong in creating large, strategic platforms by adding bolt-on acquisitions. “M&A is expected to be important, alongside organic growth, in adding value to Natus,” says Riviere.
The emphasis going forward will be on significantly expanding the reach and breadth of Natus’ market leading products, while also focusing research and development and pursuing acquisitions of complementary businesses.
Flexstone, which operates in the small- and mid-market private equity space, has previously completed healthcare transactions with Archimed in Europe. Flexstone’s operations in the US enabled it to perform due diligence on the ground for the Natus deal.
For Further Reading:
Flexstone Increases Investment in Vaccine Logistics
Flexstone Partners
An affiliate of Natixis Investment Managers
Flexstone Partners, SAS – Paris
Investment management company regulated by the Autorité des Marchés Financiers. It is a simplified stock corporation under French law with a share capital of 1,000,000 euros Under n° GP-07000028 –Trade register n°494 738 750 (RCS Paris)
5/7, rue Monttessuy,
75007 Paris
www.flexstonepartners.com
Flexstone Partners, SàRL – Geneva
Independent (unregulated) asset manager, under Swiss Federal Act on Collective Investment Schemes (“CISA”), supervised by Commission de haute surveillance de la prévoyance professionnelle (“CHS PP” and regulated by the Swiss Financial Market Supervisory Authority (“FINMA”) under Anti Money Laundering requirements. It is a limited liability company with a share capital of 750 000 CHF.
Trade register n° CH-660-0180005-1
8 chemin de Blandonnet
Vernier 1214 Geneva
Switzerland
Flexstone Partners, LLC - New York
Delaware corporation, registered with the United States Securities and Exchange Commission as an investment adviser
575 Fifth Avenue, 22nd Floor
New York, NY 10017
Flexstone Partners, PTE Ltd - Singapore
OUE Downtown 2 #24-12
6 Shenton Way Singapore 068809
Natixis Investment Managers
RCS Paris 453 952 681
Share Capital: €178 251 690
43 avenue Pierre Mendès France
75013 Paris
www.im.natixis.com
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.
Copyright © 2023 Natixis Investment Managers S.A. – All rights reserved
Flexstone, an affiliate of Natixis Investment Managers, invested $15m, with the deal valuing Natus’s total equity at around $1.2bn.
Natus was taken private after 20 years as a listed company on the Nasdaq exchange. “The lead sponsor, Archimed, and Flexstone believed taking Natus private would unlock strong growth, enabling it to access liquidity and undertake more agile decision-making,” said Clément Riviere, an investment director at Flexstone.
Natus makes equipment and provides software and services which help to diagnose and treat patients with brain disorders. Its main product groups are neuro diagnostics; neuro surgery; new-born care; hearing & balance.
“This is a large and growing subset of the healthcare industry,” said Riviere. The market is expected to grow in the mid-to-high single digit in the coming years. The drivers of growth are strong: ageing populations, growing demand from emerging markets, and the rise in traumatic brain injuries.
The deal is in the sweet spot of lead sponsor Archimed, a European-based healthcare-focused GP, which also has significant operations in the US. Archimed is particularly strong in creating large, strategic platforms by adding bolt-on acquisitions. “M&A is expected to be important, alongside organic growth, in adding value to Natus,” says Riviere.
The emphasis going forward will be on significantly expanding the reach and breadth of Natus’ market leading products, while also focusing research and development and pursuing acquisitions of complementary businesses.
Flexstone, which operates in the small- and mid-market private equity space, has previously completed healthcare transactions with Archimed in Europe. Flexstone’s operations in the US enabled it to perform due diligence on the ground for the Natus deal.
For Further Reading:
Flexstone Increases Investment in Vaccine Logistics
An affiliate of Natixis Investment Managers
Flexstone Partners, SAS – Paris
Investment management company regulated by the Autorité des Marchés Financiers. It is a simplified stock corporation under French law with a share capital of 1,000,000 euros Under n° GP-07000028 –Trade register n°494 738 750 (RCS Paris)
5/7, rue Monttessuy,
75007 Paris
www.flexstonepartners.com
Flexstone Partners, SàRL – Geneva
Independent (unregulated) asset manager, under Swiss Federal Act on Collective Investment Schemes (“CISA”), supervised by Commission de haute surveillance de la prévoyance professionnelle (“CHS PP” and regulated by the Swiss Financial Market Supervisory Authority (“FINMA”) under Anti Money Laundering requirements. It is a limited liability company with a share capital of 750 000 CHF.
Trade register n° CH-660-0180005-1
8 chemin de Blandonnet
Vernier 1214 Geneva
Switzerland
Flexstone Partners, LLC - New York
Delaware corporation, registered with the United States Securities and Exchange Commission as an investment adviser
575 Fifth Avenue, 22nd Floor
New York, NY 10017
Flexstone Partners, PTE Ltd - Singapore
OUE Downtown 2 #24-12
6 Shenton Way Singapore 068809
Natixis Investment Managers
RCS Paris 453 952 681
Share Capital: €178 251 690
43 avenue Pierre Mendès France
75013 Paris
www.im.natixis.com
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.
Copyright © 2023 Natixis Investment Managers S.A. – All rights reserved