Founded in 1994, MediFox is a leading provider of software solutions to over 6,000 ambulatory care services, elderly care homes and therapists in Germany. Its software solutions support care providers with key solutions including resource and route planning, care documentation, management information systems, as well as billing, factoring and administration services. It is headquartered in Hildesheim, Germany and employs 265 people.
The Hg investment
We have been following Medifox for many years and also participated in the 2011 sale process that ultimately led to an investment by ECM. Our extensive due diligence work gave us strong conviction that Medifox is a highly attractive business with a fragmented SMB customer base, low churn and a mission-critical, regulatory-driven product that is used daily and has a clear ROI – all carried by the fundamental trends of integrated care, an ageing population and digitalisation.
After the initial sale to ECM, we remained close to the management team and the new owners, allowing us to be fully prepared for the second opportunity to invest. Adding to our previous work, prior to investing we did considerable research on potential value creation opportunities, such as identifying 40 M&A targets and meeting 20.
Our clarity on the opportunity allowed us to act swiftly and convince management, with our software expertise and operational approach being especially important to the CEOs. We partnered with Medifox in October of 2018.
A mission-critical ERP solution serving an ageing population
The service Medifox provides allows for the smooth and efficient delivery of care in the home and community and takes pressure off other, more expensive to operate, care settings.
An opportunity for value through best-in-class operations
Our dedicated Portfolio Team have already begun work alongside management at Medifox, applying hard-earned expertise to pricing strategy, digital demand generation, customer success, sales excellence and transitioning to a subscription model.
A platform to build a European social care software champion
A long list of 40 M&A targets have been identified with the intention of growing a leader in Germany and beyond into Europe, building into new segments & adjacencies like Therapy, Disabled Care and Youth & Nursery.