Target Information

Extens, an investment fund specializing in health software and data, has announced the divestment of its stake in Teranga to Orisha, a European software publisher focused on the health, real estate, retail, construction, and agrifood sectors, supported by Francisco Partners and TA Associates. Based in Paris and employing nearly 150 professionals, Teranga has established itself as a key player in the medical and social care sector in France.

Teranga offers a comprehensive and user-friendly SaaS software suite tailored for EHPADs (establishments for dependent elderly persons), senior residences, and facilities that assist individuals with disabilities and minors in protective care. The company's flagship solution, NetSoins, has made it a market leader in the elderly care sector, now being utilized by over 5,000 establishments. Teranga has expanded its offerings to include support for individuals with disabilities through its NETVie solution, which centralizes data related to care management, including personalized projects, activity planning, educational transmissions, and prescriptions.

Industry Overview in France

The health technology sector in France is experiencing robust growth, driven by the increasing demand for software solutions that streamline operations in healthcare and social services. As the population ages and the number of individuals needing care rises, there has been a significant push towards digitizing services to enhance efficiency and improve outcomes for patients and care providers alike.

Moreover, regulatory changes and increased government investment in healthcare IT frameworks have created favorable conditions for health tech companies. This supportive ecosystem enables firms like Teranga to thrive and expand their offerings, addressing both public and private sector needs.

Innovative solutions in the field, such as Teranga's, demonstrate a commitment to enhancing the quality of care through technology. The convergence of care provision with digital solutions has positioned leading software providers as critical partners for healthcare establishments across the country.

As digital transformation continues to shape the industry, companies that can provide integrated, user-friendly solutions are likely to excel in this competitive landscape. The ongoing trends suggest a sustained growth trajectory for software providers addressing the healthcare and social care sectors.

The Rationale Behind the Deal

The decision to sell Teranga to Orisha reflects Extens's strategic focus on maximizing shareholder value while ensuring Teranga's continued growth and innovation in the sector. During Extens's investment period since June 2018, Teranga's revenue tripled to nearly €25 million in 2024, demonstrating a successful growth trajectory.

Extens’s involvement has strengthened Teranga's market position and diversified its product offerings, paving the way for future growth under Orisha's umbrella. This acquisition is positioned to accelerate Teranga’s development further and leverage Orisha's resources and network.

Investor Information

Orisha, the acquiring company, is a European software publisher backed by Francisco Partners and TA Associates, both leading international investment firms. This backing provides Orisha with the necessary financial strength and industry expertise to support Teranga's growth ambitions effectively.

The focus of Orisha on the health sector aligns perfectly with Teranga’s offerings, enhancing the strategic fit between the two companies. With Orisha's support, Teranga is well-placed to continue its trajectory as a leader in providing solutions for the medical and social care field.

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This divestment marks a significant milestone for Extens and showcases the effectiveness of its investment strategy in the health software domain. The growth exhibited by Teranga under Extens's stewardship reaffirms the viability of investing in niche technology sectors with high demand and potential for expansion.

Furthermore, the acquisition by Orisha represents an opportunistic move, allowing Teranga to benefit from broader resources and expertise that can catalyze its next phase of growth. As the healthcare landscape evolves, such partnerships are increasingly becoming essential for sustained success.

Evaluating the long-term prospects, this deal appears to be a solid investment move for both parties. Extens effectively realized value from its investment while enabling Teranga to access enhanced capabilities through Orisha's support, which could lead to further innovations in healthcare technology.

Overall, this strategic exit is not only advantageous for Extens but also positions Teranga to become an even more integral player in the health tech space, where demand for effective and streamlined care solutions continues to rise.

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