Inflexion sells health consultancy for £12m

The UK-based private equity firm has sold one division of Healthcare Knowledge International, returning 1.5x on its investment. It has now repaid all of the capital drawn on its 2003 Fund with five investments still to exit.

Mid-market firm Inflexion Private Equity has partially exited its investment in Healthcare Knowledge International (HKI), a consultant to European public health organisations.

CHKS: £12m price tag

CHKS Limited, the UK division of the business, has been sold to London-listed healthcare company Capita Group for £11.6 million (€13.1 million; $16.7 million). Buyers are currently being sought for the company’s Spanish division, IASIST.

CHKS made an operating profit of £1.6 million in 2008 on a pro forma basis on turnover of £8 million. The sale of the unit has generated proceeds of more than 1.5x for investors, Inflexion said in a statement. The firm is expecting “substantial gains” from the subsequent sale of the Iberian division.

Inflexion originally invested £4 million in HKI’s £10 million 2004 management buyout. Follow-on acquisitions of health audit business HQS and pharmaceutical data business CRC were made in 2005 and 2006 respectively.

The sale of CHKS means that Inflexion has repaid all of the capital drawn on its 2003 Fund with five investments including IASIST still to be exited, the firm said in a statement. It is currently investing from its £165 million 2006 Fund.