Private equity is branching out. Firms are usually swarming the physician group and behavioral health markets, building regional platforms, but we’re now seeing plenty of activity in new sectors, such as healthcare technology and research organizations. With fields such as diagnostics and gene therapy on the rise, it only makes sense for private equity to want a stake in the game. Last week, D.C.-based The Carlyle Group LP (NASDAQ: CG) announced it was buying Unchained Labs from Novo Holdings A/S, Canaan Partners, and TPG Biotech. The deal is valued at $435 million, or 5.80x Unchained Labs’ estimated 2021 revenue.
Unchained Labs is a life science tools company focused on solving problems for biologics and gene therapy researchers. Unchained’s systems are used by biopharma researchers worldwide to analyze and characterize large, complex molecules and make their research jobs easier. The company has 170 employees and was founded in 2015.
According to search results in our Healthcare Deals Database, Unchained Labs has announced three deals in the past few years, adding smaller competitors to complement their services. In 2016, it bought Freeslate Inc. and AVIA Biosystems, which helped bolster its biologic-focused analysis portfolio. Unchained Labs also had a successful year of fundraising in 2016, raising $31 million in Series A and $25 million in Series B, driven by participation from Novo Holdings, Canaan Partners, and TPG Biotech. In 2017, the company bought Trinean NV, a developer of scientific analysis equipment based in Belgium. Plus, it raised $13 million in Series C financing.
The investment in Unchained Labs is a continuation of Carlyle’s long-term global commitment to health care, in which it has invested more than $16 billion of equity since inception. Equity capital for the investment came from Carlyle Partners VII, an $18.5 billion fund that makes majority and strategic minority investments primarily in the U.S. in targeted industries, including health care.
The deal is expected to close in Q2:21. J.P. Morgan Securities LLC acted as financial advisor and Cooley LLP acted as legal counsel to Unchained Labs. Citi acted as financial advisor and Kirkland & Ellis LLP acted as legal counsel to Carlyle.
