PE Strikes Again to Snap Up Telemedicine Firm: The London Rush

What promises to be a busy week for FTSE 100 companies kicked off with yet another private equity deal on Monday. Buyout firm IK Partners announced it’s buying telemedicine services provider Medica Group. With earnings season entering full swing, it’s worth keeping an eye out for shares of UK homebuilders this morning after a Rightmove survey showed property owners are turning more cautious about asking for higher prices, which points to a slowly stagnating market.

(Bloomberg) — What promises to be a busy week for FTSE 100 companies kicked off with yet another private equity deal on Monday. Buyout firm IK Partners announced it’s buying telemedicine services provider Medica Group. With earnings season entering full swing, it’s worth keeping an eye out for shares of UK homebuilders this morning after a Rightmove survey showed property owners are turning more cautious about asking for higher prices, which points to a slowly stagnating market. 

Here’s the key business news from London this morning:

In The City

IK Investment Partners Ltd: The private equity firm struck a deal to buy Medica Group Plc, a provider of telemedicine services based in Hastings, for 212 pence per share in cash. The price represents a premium of 32.5% to Friday’s close and values the company at about £269 million. 

  • Medica’s board believes that IK Partners’ plans to “continue to invest in the training, development, and expansion of Medica’s global employee base will support management’s growth plans and the continued provision of essential fast and reliable reporting to support our customers,” Chairman Roy Davis said 

Homebuilders: Stocks including Persimmon Plc and Barratt Developments Plc could be active today after a survey from the online property search website Rightmove showed British property owners are turning more cautious about asking for higher prices. 

  • Average asking prices rose 1.7% from a year ago in April to £366,247, the slowest pace since December 2019 before the pandemic and government tax breaks triggered a frenzy of buying
  • The figures point to a slowly stagnating market where a shortage of new properties for sale is keeping prices aloft despite a jump in mortgage rates and double-digit inflation

Liontrust Asset Management Plc: Switzerland’s GAM Holding AG reiterated that it’s in advanced talks about the firm’s strategic options, including discussions with UK asset manager Liontrust about a combination of the two firms.

  • Liontrust’s shares dropped last week after the London-based firm reported outflows with broker Peel Hunt flagging execution risk from its potential GAM deal

In Westminster

Rishi Sunak will hold talks with major firms and investors today as the government seeks to fill the void created by the implosion of Britain’s main business lobby.

The UK and the Netherlands are deepening their energy ties through a new electricity connection that will help to tap the potential of offshore wind generation in the North Sea. LionLink — being developed by Dutch transmission system operator TenneT Holding BV and the UK’s National Grid Plc — will connect a 2 gigawatt Dutch offshore wind farm to both countries via a subsea cable by the end of the decade. 

In Case You Missed It 

Shares in British lenders gave up much of their 2023 gains in the upheaval that saw HSBC Holdings Plc rescue Silicon Valley Bank’s UK unit shortly before the Swiss government hatched an emergency rescue of Credit Suisse Group AG by UBS Group AG. Their first-quarter results will be scoured for signs of how the sector weathered the recent turmoil.

Looking Ahead 

Tomorrow we’ll get updates from miner Anglo American Plc and Primark owner Associated British Foods Plc. 

For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.

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