D5 Capital advises Incisive Health on sale to UDG Healthcare PLC for up to £13.6m

21 May 2019: UDG Healthcare plc (“UDG Healthcare” or “the Group”), a leading international healthcare services provider, announced today the acquisition of  Incisive Health, a UK-based healthcare policy and communications consultancy, for a total consideration of up to £13.6 million ($17.7 million). D5 Capital sourced, negotiated and managed the transaction through to completion. Incisive Health will join Ashfield Communications and Advisory, a wholly-owned subsidiary of UDG.

Incisive Health

Incisive Health is a UK-based healthcare communications consultancy, which specialises in healthcare policy, public affairs and communication services. Incisive Health was founded by Mike Birtwistle, Sarah Winstone and Bill Morgan in 2013. Across its head office in London and an office in Brussels, the consultancy employs 36 people and provides a suite of consultancy and communications services including clinical advocacy, corporate and digital communications, direct payer engagement, public affairs, stakeholder campaigning, strategic and policy development and training programmes. Incisive Health has a diversified client base of predominately pharmaceutical and biotech companies.

Incisive Health significantly strengthens UDG Healthcare’s capabilities in the UK and mainland Europe, specifically in dedicated policy and market access communications. Incisive Health is being acquired for a total consideration of up to £13.6 million ($17.7 million). This includes initial consideration of £8 million ($10.4 million), with an earn-out of up to £5.6 million ($7.3 million) payable over the next three years, based on the achievement of agreed profit targets.

The transaction will be financed in cash and is expected to deliver a return on capital employed in excess of the Group’s target of 15% within three years.

Commenting on the acquisition, Brendan McAtamney, CEO of UDG Healthcare plc, said:

“We are pleased to announce the acquisition of Incisive Health, which further enhances our capabilities in Ashfield Communications and Advisory. Incisive Health adds specialist capability in the growing area of public health advocacy, supporting clients to secure market access for their brands, in addition to wider communications services.”

Commenting on the transaction, Mike Birtwistle, Founding Partner of Incisive Health, said:

“We wanted to find a partner who would deepen rather than dilute our specialism in healthcare and UDG Healthcare is perfect in this respect. D5 Capital was superb throughout the process, drawing on Rupert Ashe’s experience of other deals to ensure that we found a match who will help us achieve our ambitions for Incisive Health. D5 Capital were also great at handling much of the day-to-day deal discussions, freeing us up to focus on running a successful business.”