TA Associates and Five Arrows acquired Agilio, a fast-growing provider of software to help healthcare practices ensure regulatory compliance and manage their operations, human resources and professional development needs.
Agilio was launched in 2019 with backing from by August Capital, a London-based private equity firm focused on buyouts of service-orientated companies in the U.K. middle market. August supported Agilio through the acquisitions of 10 platforms and software providers serving the primary care, dental and veterinary markets, in addition to supporting the company as it began to expand internationally.
Several of the top 10 dental groups and Integrated Care Board areas in the U.K.’s National Health Service now rely on Agilio systems to support operations and enhance productivity and efficiency.
“The leadership team at Agilio have done a fantastic job in growing the business into the U.K.’s leading healthcare operations software provider,” said August Partner Mike Biddulph. “It has been a privilege to support them on their initial journey and achieve such strong and dynamic growth. We are confident that the business will continue to thrive under the stewardship of Five Arrows and TA.”
August said its exit realized a money multiple return of 9.2x on the exit. Terms were not disclosed.
“This partnership with Five Arrows and TA will help us deliver new products and services for our core U.K. and Netherlands markets as we continue to expand into new customer sectors,” said Agilio CEO Neil Laycock.
Naveen Wadhera, managing director at TA, said the firm has been monitoring Agilio’s growth for years. Agilio is at the nexus of four of the Boston-based private equity firm’s five target sectors — technology, healthcare, financial services, consumer and business services.
Five Arrows, TA’s partner in the acquisition, is the alternative assets arm of Rothschild & Co, with €26 billion ($28 billion) in total assets under management and €9 billion ($9.7 billion) in AUM in its corporate private business. “We are delighted to support the company on the next chapter of its growth as it looks to further enhance its user experience,” said Five Arrows Managing Director Kunal Pandit.
Golub Capital was the sole lender on a unitranche facility to fund the acquisition. The facility comprises a revolver, term loan and a delayed draw term loan. “Unitranche facilities continue to be favored by sponsors who are focused on buy-and-build strategies because of the scalability and flexibility this solution offers throughout a portfolio company’s growth,” said Tara Moore, managing director and head of European Originations at Golub Capital. The firm closed on more 70 platform and add-on transactions with software and technology companies in the 12 months through Jan. 1.
Arma Partners acted as advisor to August Equity and Agilio. CMS advised on legals, Deloitte on financial and tax, OC&C on commercial, Crosslake on technology and Aon on insurance.
