ScriptSwitch

Deal Summary

Catalyst advised the shareholders of ScriptSwitch, which included ISIS Equity Partners, Advantage Growth Fund and the management team, on its sale to UnitedHealth UK, part of US corporate UnitedHealth Group Inc.

ScriptSwitch is the leading provider of software designed to support GPs with patient safety information, drug switch recommendations and dosage optimisation information at the point of prescribing.

Formed at the University of Warwick by two students and a pharmacist in 2001, ScriptSwitch went through a management buy out in 2003 backed by Midven’s Advantage Growth Fund, at which point current CEO Mike Washburn became the senior executive at the company. In May 2007, ISIS then supported a £10m secondary buy-out of ScriptSwitch alongside Mike, since when the company has grown rapidly, increasing the number of patients with access to its services by more than 250%.

UnitedHealthcare Group UK is a subsidiary of US quoted corporate UnitedHeathcare Inc, which reported revenues £12.9 billion ($21.7 billion) in 2008. In the UK the company focuses on four main areas: improving the commissioning of care; delivering new models of primary care; improving the care of patients with long term conditions; and information tools and services.

What difference did we make?

We helped the shareholders prepare the business for sale, and then used our extensive international contacts to source a strategic buyer from the US. The deal completed within 4 weeks of agreeing exclusivity.

Catalyst was asked by shareholders to manage a targeted sales process for ScriptSwitch to a short listed group of potential buyers, with the intention of keeping the deal as confidential as possible within the market.

Given ScriptSwitch’s strong position within the UK healthcare market, with clients in over 115 primary care organisations, and further predicted growth, the business attracted significant interest from both financial and trade acquirors. Managing a tightly controlled process, the shareholders ultimately chose a proposal from US corporate UnitedHealth which gave them not only an attractive return on their investment but a clear plan post acquisition of what the acquiror would do to grow and further develop the business.

Our greatest challenge on this transaction was managing the different objectives of the shareholders - which included private equity, retiring managers and those managers staying with the business post sale - to achieve a price, deal structure and potential buyer that satisfied everyone.