Manufacturer of innovative medical laser systems for aesthetic, dental and gynecological applications

Deal Facts
  • AGIC acquired a majority stake in Fotona in April 2017 alongside management
  • Exited to Vitruvian Partners in October 2021 and reinvestment for a minority stake

Business Overview

  • Fotona is a globally leading developer of innovative solid-state medical laser systems, offering a comprehensive portfolio of application specific products for medical, dental and aesthetic treatments, with best-in-class engineering, quality and brand reputation
  • It commands a global commercial organisation with direct presence in key markets and a strong network of 75+ distributors covering 65+ countries
  • Highly attractive financial profile with double-digit revenue growth and superior profit margins

Investment Thesis

  • With its superior technology and brand loyalty, Fotona is poised for fast growth in a $4 billion global market driven by favorable demographic trends, greater awareness of personal health amid social media exposure and increasing preference for non-invasive procedures
  • Significant potential in Asia region due to growing spend on cosmetic procedures by increasing middle class, medical tourism and relative underpenetration compared to Western markets
  • Multiple levers for continued growth in the form of improved go-to-market approach, new product launches, bolt-on acquisitions, better management of distributors

AGIC Value Added

  • AGIC implemented a direct go-to-market strategy in China, turned Fotona’s distributor into a subsidiary, strengthened the local management team and developed the sales & marketing force across a national network of 6 offices with ~70 employees, including a dedicated regulatory affairs team
  • Supported Fotona to invest into education, build-up of a global network of 500+ international and regional KOLs driving brand awareness; intensified digital marketing initiatives to shore up growth amid Covid-19 restrictions
  • Evaluated a number of potential bolt-on acquisition targets to leverage Fotona’s platform, complement its current footprint and offerings with differentiated expertise, product lines and geographic coverage; executed two add-on acquisitions in Europe and one distributor in China