Par Equity has claimed the acquisition of Current Health has shown the “massive potential” for Scotland’s life sciences and health tech sectors, which already contribute £7bn to the economy annually.
It has now been disclosed that BestBuy paid £300m to acquire Current Health, securing investment manager Par Equity’s exit in October.
Current Health’s acquisition is the second largest digital health exit in Europe to date, with Par leading the startup’s first external investment round in 2016 and investing in every subsequent round of funding – ultimately securing an 80% internal rate of return (IRR) for the firm’s syndicate of investors.
Par Equity participated in the company’s last financing round, in April, ahead of the acquisition, when a collective of the world’s largest pharmaceuticals and healthcare venture capitals led by Northpond Ventures secured a $43m series B round into Current Health.
The success of Current Health’s remote patient management platform resulted from its role in monitoring critical patients at home for healthcare providers like hospitals in the US, in parallel with working with the medical research community to support the development of Covid-19 vaccines.
In 2020, Current Health was one of the fastest growing healthcare companies in the world, increasing revenue by more than 3,000%.
The technology is open architecture meaning that more than 200 other healthtech devices feed further data into the system, creating an increasingly powerful device for clinicians to improve patient outcomes.
Par Equity expects to deploy more than £26m this year, representing a record year of deployment activity. Looking ahead Par Equity plans to focus approximately 20%t of its funds on digital health technologies, while building its capabilities to support larger scale-ups following the findings in Mark Logan’s 2020 Scottish Technology Ecosystem Review, which highlighted a gap in funding for companies seeking £3m to £10m of funding.
Scotland is home to one of the largest life sciences clusters in Europe, with more than 750 companies and other organisations employing in excess of 40,000 people. The sector’s combined revenue was estimated at £6.6bn in 2018, and is forecast to grow to around £8bn by 2025.
Robert Higginson at, Par Equity said: “The contribution digital health technology companies in Scotland can make to the international healthcare and life-sciences sectors. Within healthcare, institutional investors have a great opportunity to step up and play a key role in supporting the NHS to address some of the major challenges faced by society such as aging demographics and Mental Health.
“The healthcare and life sciences sectors are expected to grow rapidly over the next few years and there are several agents of change helping to unlock this potential. Innovate UK, the Association of British Healthtech Industries (ABHI) and our world class universities are highly impactful.”
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