Swedish private equity firm Priveq has mandated Carnegie to oversee the exit of its Norway-based eHealth company CSAM, four sources familiar with the situation said.
The process is in the early stages and information memoranda are due just before Christmas, two of the sources said. Indicative bids are expected to be submitted in January, two of sources added.
The company expects its FY20 EBITDA to be NOK 70m (EUR 6.6m), two of the sources said. According to Priveq’s website, the company reports a turnover of SEK 175m (EUR 16.7m).
The asset is likely to generate solid interest from sponsors, three of the sources agreed. There is already strong initial interest in the asset, one of the sources added.
CSAM could be a good fit for a Nordic or UK-based mid-sized fund, one of these sources suggested. The eHealth sector is very hot and Nordic and European sponsors are likely to circle the asset, one of the sources added. The company can be marketed both as a software and a healthcare case, which increases investor interest, one of the sources said.
Under Priveq, CSAM has made several acquisitions. This year, it acquired KIBI, a medical diagnostics and documentation company with offices in Sweden, Finland and Denmark and Arcid, a Norwegian eHealth Company. Last year, it acquired Paratus Emergency Response Business from SAAB and in 2017, CSAM acquired Swedish laboratory information management system firm Databyrån. Transactions values were not disclosed.
The next owner is likely to continue the roll-out strategy, one of the sources said. The company’s acquisitions have been well-integrated, this source added. While CSAM has managed to grow well within the Nordics, the next owner needs to prove that CSAM is able to expand outside of Europe, one of the sources concluded.
Priveq invested in the company in 2014 and sits in the Priveq IV Fund.
CSAM Health is headquartered in Oslo, Norway and also has offices in Sweden, Denmark, Finland, the UK and a wholly owned software engineering unit in the Philippines, according to its website. The company employs around 200 people and was founded in 2005.
Carnegie declined to comment. Priveq and CSAM did not respond to requests for comment.