Ergomed founder Miroslav Reljanović lands £120m windfall from Permira
Miroslav Reljanović, the founder of Ergomed, a UK-based pharmaceutical services group, is set to receive a £120m payout following a takeover offer by private equity firm Permira.
The deal values Ergomed at £703.1m and has put the company on course to become the latest firm to leave the London stock market.
Miroslav Reljanovic, a neurologist from Zagreb, Croatia, founded Ergomed in 1997 and controls an 18% stake in the business. The 64-year-old entrepreneur’s windfall comes at a time when private equity firms are increasingly targeting healthcare and pharmaceutical companies. Permira’s acquisition of Ergomed follows a number of similar deals, including the £1.3bn takeover of UK drugmaker Vectura by private equity firm Carlyle Group.
Ergomed provides services to the pharmaceutical industry, including clinical trial management, pharmacovigilance, and medical writing. The company has experienced significant growth in recent years, with revenues of £186.4m in 2022, up from £162.9m in 2021. The acquisition by Permira is expected to accelerate Ergomed’s growth and expansion plans.
Ergomed and Its Founder
Early Beginnings
Miroslav Reljanovic, a Croatian neurologist, founded Ergomed in 1997 in Zagreb. The company initially focused on providing clinical trial services to pharmaceutical and biotechnology companies. In 2004, Reljanovic relocated the company’s headquarters to Surrey in the UK, where it is currently based.
Ergomed’s Growth and Expansion under Miroslav Reljanović
Under Reljanovic’s leadership, Ergomed has grown into a leading provider of clinical research and pharmacovigilance services. The company has expanded its operations globally, with offices in the UK, Germany, France, Italy, Spain, and the US.
Ergomed went public on the London Stock Exchange in 2014, and its IPO was oversubscribed. However, in 2023, the company announced that it had agreed to be acquired by private equity firm Permira in a deal worth £703.1m. The acquisition will result in Miroslav Reljanovic receiving a £120m windfall.
Despite the acquisition, Ergomed will continue to operate as an independent entity, with Miroslav Reljanovic remaining as the company’s executive chairman. The acquisition will provide the company with the resources it needs to continue its growth and expansion in the global pharmaceutical and biotech industries.
Overall, Ergomed’s success can be attributed to Miroslav Reljanovic’s vision and leadership. By combining his medical expertise with his business acumen, he has built a company that is at the forefront of clinical research and pharmacovigilance services.
The £120m Windfall
Deal Breakdown
Ergomed founder and executive chairman Miroslav Reljanovic has landed a £120m windfall after private equity firm Permira agreed to buy the pharmaceutical services group for £703.1m. The deal values Ergomed at 1350p per share, which represents a 34% premium to its closing price of 1008p per share on 1 September 2023.
Permira’s acquisition of Ergomed is expected to complete by the end of the year. The private equity firm has said that it plans to support Ergomed’s growth strategy and invest in its capabilities to offer a broader range of services to its clients.
Ergomed’s shareholders are set to benefit from the acquisition, with the deal representing a significant premium to the company’s share price. Miroslav Reljanovic, who founded Ergomed in 1997, owns a 17.2% stake in the company, which is currently valued at £123m.
The acquisition will also see Ergomed leave the London stock market, with Permira taking the company private. This move is expected to provide Ergomed with greater flexibility and enable it to focus on its long-term strategy without the pressure of meeting the short-term expectations of public market investors.
Overall, the deal is expected to provide a boost to Ergomed’s net worth and enable it to accelerate its growth plans.
The acquisition also highlights the continued interest of private equity firms in the pharmaceutical and healthcare sector, which has been a key area of investment in recent years.
Permira’s Involvement
Permira’s Offer
Permira, a London-based private equity firm, has agreed to acquire Ergomed, a pharmaceutical services group, for £703.1 million, which has resulted in a £120m windfall for the founder of Ergomed. Permira’s offer represents a 29% premium to Ergomed’s closing share price the day before the announcement of the acquisition. The acquisition is expected to be completed in Q4 2023, subject to regulatory approvals.
Permira’s acquisition of Ergomed is part of a growing trend of private equity firms investing in the healthcare sector.
Private equity firms have been attracted to the healthcare sector due to its growing demand, aging population, and high margins. This acquisition also highlights the trend of companies leaving the London stock market for private ownership.
Permira’s Global Network and Expertise
Permira has a global network of offices and a team of over 250 investment professionals with expertise in various industries, including healthcare.
Permira has a track record of investing in healthcare companies, including investing in companies such as Ardena, a pharmaceutical contract development and manufacturing organization, and Quotient Sciences, a drug development and manufacturing organization.
Miroslav Reljanović
Permira’s experience in the healthcare sector and its global network of resources and expertise will likely help Ergomed to accelerate its growth and expand its services globally.
Permira’s investment in Ergomed will also likely provide Ergomed with access to capital and resources to pursue strategic acquisitions and investments.
In summary, Permira’s acquisition of Ergomed represents a significant investment in the healthcare sector and highlights the trend of companies leaving the London stock market for private ownership. Permira’s global network of resources and expertise in the healthcare sector will likely help Ergomed to accelerate its growth and expand its services globally.
The Role of Technology
Ergomed’s Technological Edge
Ergomed, a UK-based life sciences software firm, has been able to maintain a technological edge over its competitors by leveraging the latest advancements in technology.
The company’s proprietary software platform, which is built on a global network of clinical research sites, has been instrumental in streamlining the clinical trial process and reducing costs.
Ergomed’s software platform offers a range of features such as real-time data collection, automated reporting, and predictive analytics.
These features have helped the company to reduce the time and cost of clinical trials, while also improving the accuracy and reliability of the data collected.
Impact of Technology on Deal
The use of technology has played a crucial role in Ergomed’s recent £703.1m deal with private equity firm Permira. The deal has enabled Ergomed’s founder, Miroslav Reljanovic, to land a windfall of £120m.
The deal was made possible due to Ergomed’s strong technological capabilities, which have helped the company to build a robust and reliable clinical trial platform. The platform has been instrumental in attracting investors and securing funding for the company.
Moreover, the use of technology has helped Ergomed to stay ahead of the curve and maintain a competitive edge in the highly competitive life sciences industry.
By leveraging the latest advancements in technology, Ergomed has been able to improve the efficiency and accuracy of its clinical trials, which has helped the company to build a solid reputation in the industry.
In conclusion, the role of technology in Ergomed’s success cannot be overstated. The company’s technological edge has helped it to build a strong reputation in the life sciences industry, attract investors, and secure funding.
As the industry continues to evolve, Ergomed’s commitment to innovation and technology will be crucial in maintaining its competitive edge.
Miroslav Reljanović
