Management buy out of Synexus backed by LDC

MANCHESTER; Today (Monday 23^rd February 2015) Synexus, the world’s largest multi-national company dedicated to the recruitment and running of clinical trials at its own research centers across the globe, completed a management buyout from Lyceum Capital with the backing of LDC.

LDC is the leading private equity company in the UK mid-market and part of the Lloyds Banking Group. 

Commenting on the deal Christophe Berthoux, CEO of Synexus said: “We are delighted to be partnering with LDC. This will give us the firepower to continue expanding our international network and to broaden the number of therapy areas we offer to our pharma and CRO clients.

“We also need to continue to invest in our infrastructure and operations so that we carry on providing clients the best solution delivering thousands of patients and providing excellent quality data.

“We are very grateful to Lyceum. They had the business knowledge and expertise that has helped us transform the company into a professional organisation. The partnership with LDC marks the next phase in our ambitious growth plans.”

Synexus recorded revenues of $63m and profits (EBITDA) of $12m for the financial year ending December 2014, representing a 140 per cent increase in turnover since 2011. Further increases are expected in 2015.  Synexus’ contracted order book currently stands at a record $216m an increase of $193m since 2011.

This significant growth has been achieved through a targeted buy-and-build strategy which has included launching new sites and acquiring four businesses since 2007.

Since being taken private in 2007 Synexus has expanded its international network from 13 to 25 dedicated research centres across eight countries. At any one time these centres are involved in more than 200 trials with 14,000 patients. Recent expansion has included new site openings in Hexham in the UK (a pioneering partnership with the NHS), Bochum in Germany, Bucharest in Romania, Poznan in Poland and Sofia in Bulgaria. Synexus also acquired a site near Cape Town in South Africa. This expansion has increased its access to more than 68 million potential patients. In addition it has a network of 25 complementary affiliate sites which further extends Synexus’ reach.

The Synexus model uses its scale to deliver cost advantages and improve speed to market for new compounds. Synexus’ scale also allows it to benefit from its investment in best-in-class quality SOPs, dedicated scientific advisory boards for each therapeutic area and a wide network of KOLs to provide valuable insight to customers.  Its specialist tailored enrolment and retention strategies address a key challenge in the global clinical trial industry where almost 90 per cent of all trials undertaken are delayed due to slow patient enrolment resulting in lost sales revenue.

LDC is backing the Synexus management team to realise a clear strategy both through organic growth, using its scale and expertise to continue to take share in what is predominantly a highly fragmented market comprising around 80,000 independent GPs/investigators globally and through the acquisition of a number of potential targets.

The deal was led by LDC Director Ged Gould, who was supported by Investment Directors Simon Braham and Chris Wright. Ged Gould will join the board of Synexus. 

Ged Gould, Director and Co-Head of LDC in Manchester, said: “We believe this is a particularly good sector as pharma continues to outsource their development activity. Synexus as the world leader in its field will benefit from this trend as well as the continued growth of the healthcare industry.

"Christophe and the management team have done a fantastic job in building an international network in recent years and we are eager to further support the business break into new markets as it targets opportunities in the US, South America and Asia."