M&A – Europe
Eldercare – successful sale in expanding technology-enabled care sector
July 15, 2024
Key Highlights
- Sale of regional UK telecare player Eldercare to Doro, a top technology brand for seniors and an emerging European leader in the telecare market
- Citicourt built on its financial expertise and deep knowledge of smaller technology companies in the European healthcare market to facilitate the sale of this treasured company
- Cash deal price valued Eldercare on a multiple of revenues with no assumed debt
Based in North West England, Eldercare was one of the top five technology-enabled care (“telecare”) services companies in the UK, providing services to individuals in their home via local authorities, housing associations, the private sector and charities. It employed over 100 people and had over 50,000 telecare connections. While enjoying a strong local market position, Eldercare knew that it needed a strategic partner to accelerate the development of its telecare service offering, Citicourt arranged the acquisition of Eldercare by Doro of Sweden, the European market leader in mobile phones for seniors as well as an expanding provider of social care and telecare solutions for older and disabled people. The acquisition furthered Doro’s ambition to become a European market leader in telecare, boosting its position in the UK market to one of the two largest players with 230,000 connections.
Citicourt built on its deep understanding of critical technology-related telecare companies and its extensive knowledge and contacts in the broader European market to find a suitable partner for Eldercare. Subsequently, Citicourt utilised its deal-making expertise and its experience of competitive sale processes to facilitate negotiations between the two parties, and to complete the purchase transaction. Citicourt was able to execute the deal despite three major unavoidable geopolitical hurdles during the process.
Doro, a public company listed on the Nasdaq OMX Stockholm exchange, had net sales of SEK2,063 million (GBP182 million) in 2019.
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