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Tunstall acquired by Bridgepoint and absorbs telecare business of Attendo

Tunstall, a European market leader in the provision of telecare systems, has been acquired by private equity firm Bridgepoint from Hg Capital in a transaction totalling £225m.

At the same time, Tunstall has acquired Attendo Response and Attendo Systems, the telecare operations of Attendo Group, the Nordic market leader in the operation of elderly care homes and services. Attendo Group was acquired by Bridgepoint in February 2005 in a transaction totalling €245m. The combined group will have budgeted sales of over £100m, with the integration of the two businesses expected to bring significant synergistic benefits.

James Buckley, UK Managing Director of Tunstall, who will become group CEO of both businesses, said: “The compelling economics of telecare solutions are reflected in the growth in sales across Europe, and we are now in an ideal position to move to the next phase of growth as the telecare market leader.

“Telecare brings substantial benefits by allowing older people to remain independent in their own homes for longer. It delivers cost-effective solutions for local authorities by reducing the need for residential care and can alleviate the pressure on healthcare services.”

Rob Moores, a partner at Bridgepoint, added: “Tunstall already has a track record of strong revenue and profit growth on the back of favourable demographics and increasing awareness of the benefits of the telecare concept. By combining Tunstall with Attendo’s Systems & Response division, we will be well positioned to benefit from these trends and improve telecare penetration rates not just in the UK but in continental Europe where there is still much to play for.”

As CEO of Tunstall, James Buckley will be supported by the current senior management team. Tony Rice, Tunstall's Chief Executive for the past three years, is stepping down on completion of the transaction, but has accepted an invitation to become a non-executive director.

The acquisition does not include Attendo Systems UK which has recently been acquired by business management group HuckleHayes (see related story: Attendo Systems UK acquired by HuckleHayes ).

4 July 2005

Source: bjhc&im July 2005

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