Private equity and investment advisory firm CVC Capital Partners has announced that CVC Fund VII has completed an investment in System C Healthcare and its partner company Graphnet Health.

Maidstone-based System C Healthcare provides vertical software solutions for hospitals, social care, immunisation management and population health to help to improve the quality and efficiency of patient care.

DigitalHealth reported that CVC has taken over from private equity firm Symphony Technology Group as lead investor, alongside System C’s founders, Markus Bolton and Ian Denley. In addition, CVC purchased Symphony Technology Group’s minority shareholding in sister company Graphnet Health.

Terms of the of the deal were undisclosed, however market analysts suggested the System C business is valued at more than £250 million. The companies have revenue of around £100 million.

Symphony Technology Group, Bolton and Denley acquired McKesson’s health software operation in June 2014 and rebranded the company as System C, which had been purchased by McKesson in 2011.

System C’s chief executive Bolton said: “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 six 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.”

Date published: February 22, 2021

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