A consortium of private equity investors led by CX Partners has acquired “significant equity ownership” of Ahmedabad-based Veeda Clinical Research for an undisclosed amount.
According to an official statement, the investors will make additional investments to fund the growth requirements of the company over a period of time.
While the details of the deal were not disclosed, it said that the board of directors of the company will be reconstituted to have representatives from the incoming investors.
Subsequent to the deal, Veeda promoters Apurva Shah and Binoy Gardi will remain on the board of the company and continue leading the management team.
Founded in 2004, the clinical research firm offers a range of clinical studies including healthy volunteers and patient trials for generics, NCE and biopharmaceuticals.
The investment was led by CX Partners Fund 2 Ltd, while the names of the other investors were not disclosed.
Launched in 2009 by Ajay Relan, former India head of Citi Venture Capital International, CX Partners raised its first fund of $500 million in 2010. The firm was reportedly looking to raise $400 million for its second fund, for which it reached a first close at around $250 million last year.
From its first fund, CX Partners had invested in healthcare companies including Natco Pharma Ltd, Thyrocare Technologies Ltd and Healthium Medtech Pvt Ltd.
India’s healthcare sector has of late been gaining the favour of both private equity and venture capital investors. It was recently reported that TPG Capital and Manipal Health Enterprises are in joint talks to buy a majority stake in hospital operator Medanta from heart surgeon Naresh Trehan and other investors.
Prior to that, it was also reported that homegrown private equity fund ChrysCapital is in advanced talks to acquire a minority stake in Chennai-based Dr Agarwal’s Health Care Ltd for about Rs 200-250 crore.