Target Company Information

CareHub has successfully acquired a 95% stake in Cormedica S.r.l. as part of its expansion strategy under the Silver Economy Fund portfolio. Cormedica, headquartered in the Friuli-Venezia Giulia region of Italy, has established itself as a pivotal player in the private healthcare landscape since its inception in 2009. The company operates a network of multi-specialty outpatient clinics that provide a diverse range of medical services including rehabilitation, diagnostic imaging, and specialist consultations. In 2024, Cormedica delivered over 35,000 consultations and services, supported by a team of more than 60 healthcare professionals, including doctors, nurses, X-ray technicians, and physiotherapists.

Industry Overview in Italy

The outpatient diagnostic sector in Italy is witnessing significant growth, driven largely by an aging population and an increasing prevalence of chronic diseases. As the demand for accessible and efficient healthcare services rises, private clinics like Cormedica are becoming increasingly crucial in meeting these health needs. The Italian healthcare landscape is under pressure to innovate and expand service offerings, particularly in diagnostics, where early detection and treatment become essential.

Moreover, there has been a noticeable shift towards private healthcare services as individuals seek alternatives to the public system, which can be encumbered by long wait times and limited resources. This trend is reflected in the rising interest in outpatient services, which combine efficiency with personalized care, catering to the specific needs of patients more effectively.

With Consob estimating that investments in the healthcare sector will continue to rise, particularly amidst a focus on preventative care, companies operating in this space have ample opportunity for growth. The integration of innovative technologies, such as artificial intelligence in patient diagnosis and screening, is further expected to enhance service quality and efficiency, positioning industry players favorably in a competitive market.

Rationale Behind the Deal

The strategic acquisition of Cormedica aligns with CareHub's overarching 'buy and build' strategy, which aims to consolidate its presence within the outpatient diagnostics market. This investment not only strengthens CareHub’s operational footprint in Italy but also represents a response to the escalating demand for specialized healthcare services amid changing demographic health trends. The expected additional acquisitions under this strategy will expand CareHub’s service range and geographic reach.

Furthermore, the deal underscores the commitment of the Silver Economy Fund to foster growth in companies that cater to the Silver Age demographic, ensuring that vital healthcare services are accessible and innovative. This reflects a broader trend within private equity towards investing in sectors with high growth potential, particularly in regions that exhibit underserved healthcare needs.

Investor Information

Quadrivio Group, through its Silver Economy Fund, focuses on investing in companies that cater to the requirements of older adults, thus addressing a growing market segment. CareHub has been part of the fund's portfolio since July 2024 and has quickly made strides in advancing the outpatient diagnostics sector. With a target of achieving over €100 million in turnover, CareHub is poised to expand significantly through strategic acquisitions such as Cormedica.

Quadrivio Group's portfolio includes varied enterprises specializing in health and wellness, such as Siare, which designs and manufactures electro-medical devices, and The Private Clinic, a UK-based provider of cosmetic and longevity treatments. This diverse investment strategy illustrates the Group’s robust commitment to enhancing healthcare services while driving profitability.

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The acquisition of Cormedica by CareHub is a prudent investment that offers great potential for growth in the outpatient diagnostics sector. With the rising demand for such services, driven by demographic changes and a shift towards private healthcare, the deal positions CareHub as a formidable player in the market. The well-established infrastructure of Cormedica combined with CareHub's strategic vision promises to enhance healthcare delivery in the region.

Furthermore, the integration of innovative technologies such as AI in diagnostics adds a modern touch to traditional healthcare practices, which can improve patient outcomes and satisfaction. This aligns well with the broader industry trends and underscores the adaptability of CareHub’s business model.

Considering the impending additional acquisitions planned following this deal, CareHub is likely to experience significant synergies, leading to enhanced organizational efficiency and market penetration. This positions the firm not only for increased revenue but also for becoming a leader in preventative healthcare services in Italy.

Overall, the acquisition aligns with market demands, supports the health ecosystem with much-needed services, and signals a promising trajectory for CareHub's ambitious growth plans.

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