Months after $8.5 billion Parexel buyout, EQT to acquire Life Sciences Partners

Latest deal for healthcare venture capital firm LSP sees EQT double down on its healthcare play.

Following its $8.5 billion acquisition of Parexel earlier in the year in partnership with Goldman Sachs, investment firm EQT has made yet another buyout play, this time for European healthcare venture capital firm Life Sciences Partners (LSP). The transaction sees EQT doubling down on healthcare. “EQT has a long history of developing strong healthcare companies, and today we are one of the largest and most active private equity investors in the sector globally,” said Per Franzén, partner and head of EQT Private Capital. The deal will see EQT put up around $520 million upfront for Amsterdam-based LSP, which will be made up of 25% cash and 75% EQT AB publicly traded shares. An additional 25 million euros will be included “if certain short-term fundraising targets are met.”

“Integrating LSP within EQT's Private Capital platform will bring compelling cross-pollination opportunities for our other strategies and complement our sector expertise—making EQT an even better and more innovative healthcare investor,” added Franzén. According to LSP’s website, the healthcare venture capital firm which has provided start-up and growth capital to more than 200 companies over the past 30 years. “The partnership with EQT not only accelerates LSP's growth opportunities in an unprecedented way but also guarantees the long-term continuity of LSP's active role in the life sciences industry in Europe and beyond,” added Martijn Kleijwegt, founder and managing partner at LSP. Earlier in the year, EQT and Goldman Sachs also joined this year’s flurry of M&A activity when they moved to acquire Parexel in a $8.5 billion deal.