Investing and acquiring control in mature HealthTech companies
Accelmed is a global group of funds investing and acquiring control in HealthTech companies (medical devices, diagnostics, digital health and technology enabled services). Accelmed Partners is a US based lower market private equity HealthTech fund, focused on Buyout and Non-Control transactions in commercial stage HealthTech companies (>$10M LTM revenue)
Accelmed Partners: Buyout Strategy
Acquiring commercial HealthTech companies and fostering significant value creation by supporting management teams, driving innovation, providing growth capital and potentially integrating innovative add-on technologies, largely from Israel.
Accelmed Partners brings its expertise in HealthTech and its presence in the US and Israel to the Buyout model. With a broad geographic lens and deep experience in the field, Accelmed is uniquely positioned to find and drive value for portfolio companies.
We are looking to partner with companies that have significant commercial infrastructure (>$20M LTM Revenue), an existing customer base and established sales channels, but that may lack new products and growth, and are interested in scaling and growing their businesses by gaining access to innovative products and growth capital.
Accelmed Partners targets equity investments of $10-50M per transaction.
The proceeds of our investments are used for both organic and potentially inorganic growth through the acquisition and integration of innovative market ready technologies identified and selected by Accelmed and the platform company management.
Accelmed Partners: Non-Control Strategy
Assist commercially proven companies to achieve their potential
Accelmed Partners’ seasoned team helps companies address and solve their scaling and execution challenges.
We are looking to invest in mature HealthTech companies with proven commercial traction (>$10M of LTM Revenue) in need of growth capital and Accelmed’s support to get to liquidity.
We invest in de-risked commercial growth stage companies that have resolved their development/technical risks; clinical risks; regulatory risks; and reimbursement risks. Our primary focus is on reducing the execution risk. We partner with excellent management teams that can benefit from Accelmed Partner’s vast experience in the HealthTech industry.
The Buyout/Platform Model is best illustrated through Accelmed Growth Partner’s investment in Cogentix (NASDAQ: CGNT). Cogentix offered three legacy product lines developed more than a decade ago and had sales of approximately $40M which were basically flat. It faced competition from larger players, such as Medtronic and had a significant debt ($29M).
Accelmed invested $25M in Cogentix in November 2016 and gained control over the company together with Mr. Lew Pell who converted his $29M of debt into equity. Dr. Uri Geiger became the Chairman of the company and a new CEO (Darrin Hammers) was nominated. In a little more than a year, Accelmed focused the company around its Urology product line, transforming the company into a dynamic, high growth company (18% annual growth) through both organic (investment in S&M) and in-organic (three add-on transactions) activities. The company’s share price has more than tripled in the 15 months since the announcement of the Accelmed investment. In March 2018 the company signed an agreement to be sold to Laborie for $240M in cash.
In June 2018, Accelmed acquired control of Strata Skin (NASDAQ: SSKN), a commercial dermatology platform with sales exceeding $30, at an EV of $29M.
With new management, Accelmed led the company from flat sales and significant losses to over 15% growth and cash generation in Q1-2019, resulting in a 250% appreciation in the stock price over that period.
Accelmed enjoys close collaboration with a network of seasoned executives who have built, led and sold companies for billions of dollars. These executives assist Accelmed in identifying and analyzing potential opportunities and may serve in key leadership roles in future platform companies.
