STOCKHOLM, Nov. 10, 2021 /PRNewswire/ — EQT AB (publ) today announces the signing of an agreement (the “Transaction”) to acquire LSP (“Life Sciences Partners” or the “Company”), a leading European life sciences venture capital firm with approximately EUR 2.2 billion of assets under management (AUM) and a team of 34 professionals.
LSP will strengthen EQT’s position as one of the leading and most active private markets investors in the healthcare sector
LSP’s highly experienced team will complement EQT’s existing knowledge base within life sciences and expand EQT’s ability to support companies at the forefront of innovation in the healthcare sector
LSP will enhance EQT’s ability to drive positive social impact in the healthcare industry and future-proof companies that can advance life science research through cutting edge technology
The upfront consideration amounts to EUR 450 million (on a cash- and debt free basis), comprising of 25 percent cash and 75 percent new EQT AB publicly traded shares, with a potential additional earn-out payment of EUR 25 million
LSP, headquartered in Amsterdam, the Netherlands, is a venture capital firm that invests in innovative companies with strong scientific and clinical rationale across several life sciences strategies. The Company was founded in 1998 and today is one of Europe’s largest and most experienced life sciences investment firms. LSP employs 34 professionals across its offices in Amsterdam, Munich, and Boston.
Over the past two decades, LSP has invested in over 150 life sciences companies, generated strong returns, and built a top-performing life sciences franchise. As part of EQT, the LSP team will be able to continue to operate in the same successful manner as they have been operating over the past two decades. The entire LSP team, including all partners and employees, will join EQT.
LSP is expected to generate approximately EUR 37 million in revenues and approximately EUR 24 million in EBITDA (excluding carried interest) during 2021. The proposed consideration is expected to equate to a mid-teens EBITDA multiple on a run-rate basis at completion.
Strong scalability benefits for both parties. LSP brings a deep scientific knowledge base, which will enable thorough assessment of scientific risk and development of science-based companies. As part of EQT, LSP can continue …….