HgCapital to sell Pulse to Blackstone-owned rival

LONDON, Nov 12 (BestGrowthStock) – British private equity firm
HgCapital said on Friday it has agreed to sell health and social
care staffing business Pulse to a Blackstone-owned (BX.N: ) rival,
earning it twice its initial equity investment.

The firm did not give any financial details on the deal but
a source familiar with the situation said the deal values Pulse
at some 75 million pounds ($120.3 million).

A second source said Blackstone intends to merge Pulse with
Independent Clinical Services, pursuing a so-called “buy and
build strategy”. [ID:nLDE69I1A4]

Blackstone bought ICS, which provides nurses and doctors to
Britain’s National Health Service (NHS) and private medical
institutions, earlier this year.

Pulse provides bank management services to large NHS Trusts
and helps provide nursing care to people in their own homes.

The deal values Pulse at about five times full-year earnings
before interest, tax, depreciation and amortisation (EBITDA),
putting it on a par with listed health and social care recruiter
Healthcare Locums Plc (HLO.L: ), the first source said.

That contrasts with the often double-digit earnings
multiples paid for healthcare businesses like nursing homes and
diagnostics firms, which have more fixed assets.

The deal follows HgCapital’s sale of Norwegian software
company Visma to U.S. buyout firm KKR (KKR.N: ) for some 1.2
billion pounds in September. Both Visma and Pulse were talking
to advisers about stock market listings in 2011, HgCapital
chairman Ian Armitage told Reuters in August. [ID:nLDE67P1MM]
($1=.6232 Pound)
(Reporting by Simon Meads; Editing by Jon Loades-Carter)

HgCapital to sell Pulse to Blackstone-owned rival