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Scoop: Open Health fetches almost $1 billion in sale to Astorg

Jun 7, 2022
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Illustration: Sarah Grillo/Axios

Astorg's pending acquisition of Open Health from Amulet Capital values the medical affairs company just shy of $1 billion, sources familiar with the pending deal tell Axios.

Driving the news: Astorg last week announced plans to acquire the London-based company, concluding a Houlihan Lokey-run sale process Axios first reported on in March.

  • The companies did not disclose financial terms.
  • Sources tell Sarah that the nearly $1 billion value of the deal equates to a forward multiple of approximately 20x EBITDA. On a trailing basis, that pans out to about 24x EBITDA.
  • Amulet is set to generate a roughly 4x return on the investment, sources said.

State of play: Demand for companies like Open Health that offer scientific and complex messaging around commercialization is on the rise. The drivers?

  • The increasing volume and complexity of therapeutics are much greater today than ever before.
  • Drug marketing spend is increasingly targeted as complex therapies cater to smaller, niche populations.
  • Digitization strategies to support engagement with both HCPs and consumers directly.

Background: Many PE firms, including Novo Holdings, Kohlberg & Co, TPG and Areas, have made sizable bets in this category over the last 12 months, with assets commanding EBITDA multiples in the 17x to 22x range.

What we're watching: The sector's next trade. Among those in play...

  • Auctus Capital Partners' PharmaLex Group, a Germany-based pharma services company working with Harris Williams on a potential sale, per a previous Axios report.
  • RevHealth, which Axios wrote previously is working with Houlihan on a potential sale.

Amulet declined to comment and Astorg did not return requests for comment.

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