NVM celebrates lucrative exit
Article Date: Sep 23 2009
Clive Austin, NVM Private Equity
Medical diagnostics company DXS has been sold for as much as $130 million (£80 million), leading to a ‘record exit’ for investor NVM Private Equity.
Global diagnostics group Qiagen paid an initial $95 million for the business, consisting of $75 million in cash and the rest in deferred payments. This initial consideration would represent a return of eight times money for NVM and an IRR of 34 per cent, and would improve to 13 times money and 39 per cent if earn-outs were fully achieved.
Other investors who have benefited from the sale are venture capital firms YFM and Hygea, as well as DXS’s management led by founder and CEO Steve Little.
Clive Austin, a member of the investment team at NVM’s Manchester office, says the exit represents ‘an outstanding success’ for the firm, which first backed DXS in 2001 with £1.25 million and led further funding rounds in 2004 and 2006 bringing its total investment to £3 million.
DXS and its shareholders were advised on the deal by law firm Osborne Clarke while Qiagen was represented by Morrison & Foerster.
The acquired company employs 80 staff and delivered pre-tax profits of close to £4.5 million in the year to June.
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