Information on the Target

Igenomix is a leading global provider of reproductive genetics and women's health solutions. Since its inception, the company has focused on providing personalized genetic information to enhance fertility treatments, women's health, and the management of rare diseases. With a dedicated team of 25 top-tier scientists and researchers, led by Professor Carlos Simon, Igenomix has developed a robust portfolio of genetic tests and services.

Charme Capital Partners first invested in Igenomix in 2016, recognizing the company's innovation and growth potential. Following a successful partnership with EQT, Charme reinvested in a minority stake in 2019 to further support Igenomix's strategic goals and international expansion efforts. This collaboration has facilitated significant growth and operational enhancements, particularly marked by the establishment of Igenomix’s operations in China.

Industry Overview in the Target’s Specific Country

The reproductive health and genetic testing industry has seen considerable advancements worldwide, fueled by increasing awareness of fertility issues and the rising demand for personalized healthcare solutions. In recent years, the market has witnessed technological innovations and regulatory support that have accelerated growth, particularly in sectors focused on reproductive health and genetics.

In countries like Spain, where Igenomix is headquartered, there has been substantial growth in assisted reproduction technologies (ART) and genetic testing services. The Spanish healthcare system is characterized by its advanced ART regulations, promoting a conducive environment for companies engaged in reproductive health services. This regulatory framework has enabled firms like Igenomix to thrive and expand their offerings.

Furthermore, as social attitudes toward fertility and genetic screening continue to evolve, there is a growing acceptance and normalization of fertility treatments, further increasing demand. The young and tech-savvy population also drives growth, highlighting a market that is increasingly reliant on innovative healthcare solutions to address both reproductive and genetic health concerns.

The combination of these trends positions Igenomix favorably to capitalize on the industry's growth, with an increasing market focus on personalized medicine and the integration of genetic data into clinical practice.

The Rationale Behind the Deal

The agreement between Charme, EQT, and Vitrolife to sell Igenomix represents a strategic move designed to create a global leader in the reproductive health market. The sale not only highlights the successful partnership that Igenomix has enjoyed with Charme and EQT but also paves the way for enhanced growth opportunities through collaboration with Vitrolife, a well-respected player in the reproductive health sector.

This merger is expected to leverage the complementary strengths of both companies, aiming to improve health outcomes and expand services offered to patients across the globe. The deal is further bolstered by Igenomix's impressive revenue growth, driven by its successful entry into new markets such as China.

Information About the Investor

Charme Capital Partners is a distinguished pan-European mid-market private equity firm that focuses on investing in companies with strong growth potential across various sectors, including healthcare. With its significant experience and investment acumen, Charme's strategy has consistently revolved around identifying undervalued or promising businesses and enabling them to achieve their full potential through strategic guidance and operational improvements.

Founded by a team of seasoned investment professionals, Charme has established a robust portfolio that reflects its commitment to fostering innovation and growth. The firm's expertise, particularly in the healthcare sector, has been pivotal in Igenomix's trajectory of success resulting in impressive revenue and EBITDA growth during its partnership.

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The acquisition of Igenomix by Vitrolife, with the backing of Charme and EQT, is poised to be a strategically sound investment. By merging with Vitrolife, Igenomix will benefit from strengthened resources and capabilities that can enhance its service delivery and expand its market reach.

Furthermore, the ongoing trends in the reproductive health industry present a favorable outlook for growth. As the demand for genetic testing and reproductive services continues to escalate, Igenomix’s innovative offerings stand to benefit significantly from the combined entity’s expanded reach and operational synergies.

The robust compounded annual growth rates of Igenomix's revenues and EBITDA under Charme's guidance underscore the potential for continued success. Moreover, retaining a minority stake in Vitrolife indicates that Igenomix and its stakeholders will share in the continued growth and profitability of the newly formed entity.

Overall, the strategic nature of this deal aligns with prevailing industry trends and enhances Igenomix's potential for future growth, positioning it as a key player in the evolving landscape of reproductive health.

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