The business

Established in 1989, Healthcare Knowledge International (HKI) provides benchmarking and other performance analytical information to European public health services in order to maximize efficiency and reduce overall costs. The company effectively created the market. HKI had signed forward contracts for the next five years, thereby effectively locking out any potential competition. HKI acquired a similar business in Spain in 1996. HKI is the most significant database for patient-based information in the Iberian region.

During our ownership we have worked with management to: source new markets and clients; optimise tax structuring; and introduce formal KPI monitoring. A follow-on acquisition of a health audit business (HQS) was made in January 2005, and a pharma data business, CRC, was added in 2006.

The investment

The £11 million MBO was led by John Hartz and Charles Thompson. John and Charles have joined the Board of Directors. Funds managed by Inflexion invested £4 million.

The management team invested in the transaction and debt facilities were provided by HSBC.

The exit in July 2009 generated a return of 2.6x.