GIC and Linden Capital Invest $2.5bn in Klick Health: A New Era for Healthcare Marketing

Singapore’s sovereign wealth fund GIC and private equity firm Linden Capital Partners have joined forces to acquire a minority stake in Klick Health, a leading healthcare marketing agency. This strategic move values Klick at nearly $2.5bn, spotlighting the vibrant merger and acquisition activity within the healthcare sector despite a broader slowdown in mid-market private equity deals.

The Deal Breakdown

• GIC and Linden Capital are set to buy out the minority stake currently held by GTCR, with Klick’s Canadian co-founders retaining control.
• The valuation reflects an impressive 18 times earnings, with Klick generating over $130mn annually.

Klick Health’s Market Impact

Founded in 1997, Klick has carved a niche in developing launch strategies and marketing campaigns for pharmaceutical giants like Bayer and Biohaven. Their recent collaboration with Bayer on a Super Bowl commercial for Aspirin targeted at Gen Xers and millennials underscores their innovative approach to healthcare marketing.

The Bigger Picture

This transaction is part of a larger trend of private equity-backed healthcare deals, demonstrating the sector's resilience and attractiveness to investors. Notable examples include:

• Siemens’ $5.1bn acquisition of Dotmatics.
• New Mountain Capital’s $3.1bn deal for Real Chemistry.

With GIC managing $800bn and Linden Capital overseeing $12.5bn, their investment in Klick signals strong confidence in the future of healthcare marketing. Meanwhile, GTCR’s exit adds to its track record of successful investments, including the recent sale of its majority stake in Worldpay.

Healthcare Deals on the Rise

Despite regulatory challenges, the first half of the year saw $67bn in healthcare deals in the Americas, a testament to the sector's enduring appeal. This figure, though down from $99bn in the same period last year, highlights the ongoing interest in healthcare investments.