The business

Independent Clinical Services (ICS) based in Bristol, is the leading provider of temporary healthcare staff, specialising in placing scarce senior and high grade nurses into the UK healthcare sector. In addition to supplying nurses into hospitals, ICS’s rapidly expanding complex community care business provides nursing services to patients in their homes.

ICS has carved out a niche position in the high-end of the market as a result of its ability to fulfil customer requests with far greater success rates than any of its competitors. ICS placement rates are typically c.90%, compared to the market average of c.30%. It ensures the excellent placement rates through an advanced centralised call centre and a database of highly skilled, mobile nurses.

Our investment case had two principal growth areas, geographical expansion and complex community care. During our ownership, the business continued its rapid spread of geographical coverage, adding significant numbers of new customers and delivering its market-leading service on a national level. Complex community care produced c.40% per annum growth rates and benefits from high revenue visibility. These factors, together with continued investment in IT infrastructure and optimisation of working practices, resulted in a successful exit to Blackstone who identified the business as the best positioned and best performing asset in the sector.

The exit

The business was sold to Blackstone Group in June 2010. In just 22 months from investment, Inflexion achieved a 2.7x money multiple and 82% IRR, with the potential to earn more through deferred consideration. The deal was led by Gareth Healy, John Hartz and Nicola Boyd.