In July 2017, Graphite backed the management buy-out of Random42, the leading independent provider of highly complex scientific 3D digital animation and AR & VR experiences to the global pharma and life sciences industry. Random42 assists pharmaceutical and biotech companies demonstrate disease mechanisms and the ways in which molecular medical and pharmaceutical products interact with the human body. Animations are used for educational and promotional purposes throughout the lifecycle of healthcare products, from the pre-clinical stage, through to clinical trials, and as part of product launches and refreshes.
The transaction represented the opportunity to support Random42 in its continued professionalisation and international expansion, to build on its market leading position. The company has worked with all of the top 25 global pharmaceutical companies, as well as with over 100 smaller pharma and biotech firms, with relationships across Europe, the US and Asia. Through further improvement of its sales and marketing capability, introduction of best practice account management and expansion into adjacent markets, the business doubled both revenue and EBITDA over the investment period, achieving an EBITDA margin of over 50% following an initial period of accelerated investment.
KEY BUSINESS ACHIEVEMENTS
Doubled both revenue and EBITDA
Broadened the senior management team
Overhauled the sales and account management functions
Introduced a new structured pricing architecture
Launched a digital asset library to create significant operational efficiency
Restructured operations to provide scalability
RETURN ON GRAPHITE'S INVESTMENT
In 2022 Random42 was sold to The Lockwood Group, generating a return of 3.1 times cost.