M&A Deal Summary

Cello Health Acquires MedErgy HealthGroup

On March 15, 2011, Cello Health acquired business services company MedErgy HealthGroup from Lake Capital and Frontenac for 15M USD

Acquisition Highlights
  • This is Cello Health’s 1st transaction in the Business Services sector.
  • This is Cello Health’s largest (disclosed) transaction.
  • This is Cello Health’s 1st transaction in the United States.
  • This is Cello Health’s 1st transaction in Pennsylvania.

M&A Deal Summary

Date 2011-03-15
Target MedErgy HealthGroup
Sector Business Services
Buyer(s) Cello Health
Sellers(s) Lake Capital
Frontenac
Deal Type Add-on Acquisition
Deal Value 15M USD

Target

MedErgy HealthGroup

Yardley, Pennsylvania, United States
website
MedErgy HealthGroup, Inc. is a successful US-based healthcare communications consulting company. It was founded in 2002 by its current Chief Executive, Julia Ralston, and other current members of the senior management team. Key services provided by MedErgy include strategic consultancy, scientific communications, and medical education and clinician learning.

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Buyer(S) 1

Buyer

Cello Health

London, United Kingdom

website


Category Company
Sector Business Services
DESCRIPTION

Cello Health is a global healthcare-focused advisory firm comprised of a set of leading scientific, commercial advisory, and digital delivery capabilities. Cello Health currently services 24 of the top 25 pharmaceutical clients globally, as well as a wide range of biotech, diagnostics, devices, and other key non-healthcare clients. Cello Health is based in London, United Kingdom.


DEAL STATS #
Overall 18 of 25
Sector (Business Services) 1 of 3
Type (Add-on Acquisition) 17 of 24
State (Pennsylvania) 1 of 1
Country (United States) 1 of 5
Year (2011) 1 of 2
Size (of disclosed) 1 of 17
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-10-28 2CV

London, United Kingdom

2CV Ltd. is a specialist consumer market research consultancy. 2CV, which was founded in 1996 by Vincent Nolan, provides market research and consultancy services to a number of major global brands. It also advises clients on product development, creative marketing communications and strategic media planning.

Buy £6M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-04-11 Red Kite Consulting Group

United Kingdom

Red Kite Consulting Group Ltd. is a UK based consultancy business which serves the pharmaceutical sector, advising on marketing strategy and market access issues. The business was founded in 1999 and clients include Abbott, Astellas, Bayer, Bristol-Myers Squibb, Pfizer, Roche, Sanofi-Aventis and Shire.

Buy -

Seller(S) 2

SELLER

Lake Capital

Chicago, Illinois, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1998
PE ASSETS 1.3B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Lake Capital is a private equity firm that targets a limited number of middle-market, service-based companies. The firm typically allocates $50 to $75 million equity to each portfolio company initiative. However, with seller financing, third-party debt, and co-investment opportunities, significant capital (in addition to the initial equity allocation) is available to each initiative. The service-based businesses the firm pursues include marketing services, finance-related services, specialty services, healthcare services, consumer services, technology services, business process outsourcing services, and marketing services. The firm is typically interested in buyout, partnership and start-up opportunities. Lake Capital was formed in 1998 and is based in Chicago, Illinois.


DEAL STATS #
Overall 13 of 24
Sector (Business Services) 6 of 9
Type (Add-on Acquisition) 1 of 6
State (Pennsylvania) 2 of 2
Country (United States) 13 of 23
Year (2011) 1 of 1
Size (of disclosed) 8 of 9
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-12-01 Viamedia

Lexington, Kentucky, United States

Viamedia is an independent sales organization of local advertising services for U.S. cable and telecommunications service providers. Viamedia was founded in 2001 and is based in Lexington, Kentucky.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-02-17 Netstar-1

Rockville, Maryland, United States

NetStar-1 is a growing business consulting firm providing management consulting and information technology based solutions to government clients. The core of our management consulting practice is proven program management and business financial management methodologies and expertise.

Sell -
SELLER

Frontenac

Chicago, Illinois, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1971
PE ASSETS 2.1B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Frontenac is a Midwest US-based private equity firm that seek profitable, lower middle-market company investments with $5 to $25 million of EBITDA. Frontenac typically partners with management when pursuing acquisitions, including companies managed by owner-operators. Sectors of interest include financial services, healthcare services, education/HR services, manufacturing, publishing/media, and technology services. Frontenac was formed in 1971 and is based in Chicago, Illinois.


DEAL STATS #
Overall 30 of 59
Sector (Business Services) 7 of 9
Type (Add-on Acquisition) 6 of 22
State (Pennsylvania) 1 of 2
Country (United States) 28 of 57
Year (2011) 1 of 3
Size (of disclosed) 16 of 16
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-01-01 Mercer Foods

Modesto, California, United States

Mercer Foods is a provider of freeze-dried fruit and vegetable ingredients. Mercer Foods offers a complete solution for freeze-dried food needs, including an extensive product portfolio and complete customization capabilities. Mercer Foods was founded in 1980 and is based in Modesto, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-04-04 Encore Discovery Solutions

The Woodlands, Texas, United States

At Encore Discovery Solutions, we support many of the world’s leading law firms and corporations with end-to-end discovery management. Our world-class discovery professionals are experts who help our clients identify and implement the right process and technology for any discovery or similar data-intensive matter. Encore Discovery Solutions, Inc. was formerly known as Encore Legal Solutions, Inc. and changed its name to Encore Discovery Solutions, Inc. in June 2008.

Sell $100M