Private equity funding for sexual health screening specialist

Sheffield-based integrated diagnostic business Preventx has received a “significant minority growth investment” from a private equity backer.

The funding support has come from Synova Capital. Preventx is a provider of online-led sexual health testing and diagnostic services and the only UK company with a fully integrated laboratory model.

Preventx was founded in 2008 by Neil Cooper and Tim Alston. Since then, the business has grown rapidly, driven by the recognition by health commissioners that online-led, self-sample testing is a cost-effective way to deal with rising patient demand.

The business currently provides services to more than a third of all Local Authorities in England. In 2017, Preventx won a significant pan-London contract, which covers 28 boroughs, further cementing its position as the leading sexual health diagnostics provider in the country.

It has integrated state of the art laboratory facilities in Sheffield with a proprietary software platform that services the end user, commissioners and clinicians, and manages laboratory workflow and reporting.

Synova will support Preventx and its founders to deliver an ambitious growth plan built upon the business’s excellent reputation and integrated technology platform.

Commenting on the investment, Cooper and Alston said: “Our primary aim was to bring in a partner that could really help us to scale up the business in order to achieve its full potential.

“Synova’s excellent track record of investing in and supporting businesses with similar characteristics, plus the trust and shared strategic vision we have built up over the past five years since first meeting Synova, means we are highly confident this new partnership will be a great success.

“With Synova on board we now have greater resources to strengthen our existing offering and also to explore new avenues for expansion.” 

Tim Ashlin, Synova partner and head of healthcare, said: “Having tracked Preventx’s progress since we first met with Neil and Tim five years ago, we are delighted to announce this growth investment into the business.

“The opportunities for the company’s unique integrated diagnostic platform, underpinned by proprietary software are really exciting, and we are already partnering closely with the team to help unlock these.

“This investment fits closely with Synova’s approach of supporting high-quality management teams in high-growth sectors to deliver long-term value creation.”

National law firm Mills & Reeve advised Preventx and its shareholders on the investment. The Mills & Reeve team was led by Julian Smith, corporate partner, and Vicky Protano, principal associate.

Smith, who leads the firm’s independent sector health and care team, said: “We are delighted to have supported this notable transaction in the health sector and look forward to seeing the business continue to flourish with this investment by Synova.”

Alston said: “Working with the Mills & Reeve team was a huge benefit to us. The team’s experience of the health sector meant the deal progressed smoothly, leaving as much time as possible to get on with our day-to-day operations.”