Private Equity firm CVC Capital Partners invests in System C

Private equity firm CVC Capital Partners has become an investor and major shareholder in System C Healthcare, the UK supplier of health and social care software and services.

CVC has replaced Symphony Technology Group (STG), a private equity firm specialising in technology investments, as lead investor, alongside the company’s founders, Markus Bolton and Ian Denley.

Digital Health understands that CVC has also purchased STG’s minority shareholding in sister company Graphnet Health.

The terms of the deal or price were not disclosed, but market analysts suggest STG had valued the System C business at more than £250m. The companies have revenues in the region of £100m.

CVC said in a press statement: “CVC Capital Partners today announced that CVC Fund VII has completed an investment in System C Healthcare and its partner company Graphnet Health.”

System C has seen strong growth in the UK health and social care software market, with leading positions in shared records, child health and population health as well as patient administration, electronic patients records and adults’ and children’s social care.

The company’s CareFlow suite of clinical and care management systems is used across 40 hospitals in the NHS and by the private sector.

The System C & Graphnet Care Alliance is also currently providing key software being used for planning and managing the UK’s Covid-19 vaccination programme.

STG, Bolton and Denley acquired McKesson’s health software operations in June 2014 and then re-branded the company as System C, which had been bought by McKesson in 2011.

System C joint CEO Markus Bolton, added: “We originally founded System C 35 years ago and have had a number of angel, venture capital, public and private equity backers since then.

“STG has been a great partner for us over the last 6 years, longer than the typical private equity investment horizon, and we are grateful for the support they gave us during that time. We are now delighted to be moving ahead with CVC, as it is one of the leading private equity companies in the world, and with a UK base that has substantial experience in both the software and healthcare industries.”

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