Inflexion leads £13m healthcare MBO

Inflexion Private Equity has announced the management buyout of Healthcare Knowledge Systems International, the second investment from its Private Equity Fund 2.

Inflexion Private Equity, the UK-based mid-market private equity firm, has led the £13 million management buyout of Healthcare Knowledge Systems International (HKSI), a leading provider of healthcare information services to hospitals in the UK and Spain.

Inflexion has invested approximately £5 million (€7.6 million; $9.2 million), alongside an investment from Inflexion plc and the management team. HKSI has a market share of approximately 70 percent of total UK inpatient activity.

The investment was made from the firm’s second fund, Inflexion Private Equity Fund 2, which held an initial close in July 2003 on €50 million. Investors in the fund include Martin Currie, Nordea Pension and London Merchant Securities.

No final target has been set for the second fund, although it is expected to surpass Inflexion’s first fund, which closed in 1999 on €100 million and is now fully invested.

The investment in HKSI follows the acquisition last year of the UK cinema group, Ster Century, a deal valued at approximately £25 million, of which Inflexion provided one-third of the funding as equity, with the remainder provided by HSBC as debt.

Commenting on the deals done from the second fund, John Hartz, managing director at Inflexion said that both buyouts had come about as a result of “corporates reshuffling their portfolio” and that the mid-market sector was “much stronger than this time last year”.