MIR’s top-notch technology, strategic positioning key selling points for Quadrivio – Deal Focus

When the sale documents of Medical International Research (MIR), an Italian medical diagnostics devices and software provider, arrived on Quadrivio’s office desks, it was soon clear that the asset would be a great fit for its Silver Economy Fund.

Quadrivio announced last week that it had taken over MIR together with a pool of co-investors including Turenne via its Capital Santé 3 fund, Eurazeo via the Nov Santé Actions Non Cotées fund, BNP Paribas Equity Investments, Entheos and Muzinich & Co.

Quadrivio, via its Silver Economy Fund — which focuses on investing in companies offering bespoke healthcare products and services to the over-50s age group — is the leading investor, having acquired a majority stake in the company, Stefano Malagoli, partner at the sponsor, told Mergermarket.

Three main factors convinced Quadrivio that MIR would blend seamlessly within the fund portfolio, which already includes Siare, a Bologna-based company specialised in the design and manufacturing of electromedical equipment, as well as clinic groups The Private Clinic, based in the UK, and CareHub, based in Milan.

Firstly, MIR produces small medical devices featuring "top-notch technology" in spirometry, Malagoli said. Its devices include pulse oximeters, spirometers, and single-use respiratory turbines that promote early diagnosis and monitoring of major respiratory diseases. MIR also offers an integrated diagnostic platform and proprietary software capable of real-time monitoring of key vital signs. Being already well positioned in the clinics segment, MIR's investment will now help the fund strengthen its medical devices offering, he added.

Secondly, it boasts an interesting market positioning, being one of the main leaders in the spirometry space, he said.

Thirdly, the company's size - it generated EUR 9m EBITDA on EUR 22m turnover in 2024 - means it can leverage on it as it works to grow its product offering via acquisitive growth, Malagoli said.

Quadrivio plans to accelerate MIR's growth plans, having a special eye on M&A opportunities, "while respecting its organisational balance", he said. "We offered a constructive approach, emphasizing also our international angle", Malagoli said. Silver Economy Fund has an international presence, with offices in London, Luxembourg, New York, Los Angeles and Hong Kong, and boasts a team of international investors able to spur MIR's expansion abroad. This was appreciated by the company's management, he added.

The fund will initially focus its M&A efforts to grow MIR in the European market. Malagoli described the European medical devices market as highly fragmented, offering many strategic consolidation opportunities for a player like MIR, which now counts on the financial support of a team of investors to fully exploit its potential, he added.

The global medical devices market is also fragmented and does not feature large players, he said, adding it is worth around USD 1bn.

EV/EBITDA sector multiples are in the double digits, he said, adding players active in the medical devices space generally have over 70% gross margins on the back of low operating leverage and high revenue growth rate, he said.

Quadrivio was accompanied in the deal financing by Muzinich & Co and BPER Banca. As a co-investor, Muzinich provided unitranche debt alongside equity, Malagoli said, declining to spell out financing figures.

Quadrivio's Silver Economy Fund is focused on the European healthcare sector, investing in both medical devices and services. Italy, in particular, is a highly skilled market, featuring optimal technologies in a context of small-sized firms, providing many opportunities for Quadrivio to tap into, Malagoli said, adding that it looks to accompany all its portfolio firms in their internalization processes.