Axios Pro: Health Tech Deals

September 07, 2023

Axios Pro Exclusive Content

Happy Thursday, Health Tech readers.

1 big thing: Grant Avenue recaps CREO

Grant Avenue Capital invested in CREO, a Durham, N.C.-based strategic consultancy for the life sciences and health care markets.

Why it matters: As regulatory changes around drug pricing create increased uncertainty for the pharmaceutical and life sciences industry, demand is growing for solutions to help navigate evolving complexities.

Details: The deal was a recapitalization and Grant Avenue didn't use debt to finance, managing director Brian Berkin at Grant Avenue tells Aaron.

  • Valuation was consistent with Grant Avenue's target of investing between $25 million and $75 million of equity, a source familiar tells Aaron.
  • CREO founders and management, including CEO Susan Acker-Walsh and president Mike Townley, "continue to be significant owners in the business," Berkin says.
  • Clearsight Advisors served as financial adviser to CREO and Crosstree Capital Partners advised Grant Avenue.

What's next: "Grant Avenue is eager to help strengthen CREO's reach and impact across new geographies, partnerships, service offerings, and M&A," Berkin says.

How it works: CREO helps life sciences and health care companies navigate various strategies, including business development, cybersecurity and regulatory compliance.

What they're saying: "While there is strong underlying end market growth, cybersecurity, IT compliance, and digital transformation are key areas of increasing concern for CREO's life sciences and healthcare customers," Berkin says.

  • "With a wider capital base and more experience around the table, the company can further invest in the business to drive growth and ensure consistent high-quality customer service," he adds.

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