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Integrated Diagnostics Holdings

Better testing

Region: North Africa, Egypt Investment date: 2014 Sector: Private Equity Exit date: Deal type: Expansion Status date: Current

As the starting point for any medical treatment, surgery or prescription of medicine, diagnostic services are critical to well-being worldwide. In Egypt over 200 million pathology diagnostic tests are performed each year, around 40 million of these tests take place in independent diagnostic labs.

In December 2014, Actis invested US$113m in Integrated Diagnostics Holdings (“IDH”), Egypt’s largest private sector diagnostics service provider. IDH has over 300 branches, serving 6 million patients and conducting more than 20 million tests each year. It was formed by the merger of the top two diagnostics service providers in Egypt, Al Mokhtabar and Al Borg, in 2012. IDH offers the full spectrum of pathology diagnostic testing, and in addition to its presence in Egypt it also has laboratories in Sudan and Jordan.

Diagnostics continues to grow in developing markets as a result of new technology enabling more targeted treatments; increasing understanding of preventive diagnosis; more focus on healthcare and hygiene and demand for branded, high quality certifications. With a 45% market share, IDH it has earned a reputation for quality and reliability and today is 6x larger than its largest competitor.

Unlike developed markets where pathology diagnostics is usually a b2b industry, in the markets that IDH offers services, it is a consumer choice. IDH is a market leading brand that offers consumers quality, convenience, reliability and consistency in service.

With our local and sector insights we were able to anticipate how a consumer driven healthcare stock would be highly perceived in an IPO; which materialised when IDH listed its shares in the London Stock Exchange in May 2015. Actis is working with IDH to leverage its scale and strong brand recognition; accelerate its growth trajectory in its core and adjacent markets; and offer new and complementary services to its customers.

Integrated Diagnostics Holdings