CVC Asia V has reached agreement to acquire 100% of outstanding shares of Sogo Medical Group Co., Ltd. (“Sogo”) in mid-Feb 2024 from Polaris Private Equity Fund V (“Polaris Fund V”), managed by Polaris Capital Group Co., Ltd. (“Polaris”), and other shareholders.

Established in 1978 with the founding philosophy: “To contribute to the community and society through supporting quality medical care”, Sogo provides a comprehensive range of services relating to the management of medical practices, including consulting for medical institutions, Doctor-to-Doctor services such as career change support and assistance in launching independent practices, leasing and rental of medical equipment, operation of in-hospital restaurants/kiosks and temporary staffing. Over the years, Sogo has also developed an extensive network of approximately 740 pharmacies nationwide, including the medical malls developed and operated by Sogo to better address local healthcare provision issues. Following Polaris’s management buyout and delisting of Sogo in 2020, the company has fostered its distinctive business model through M&A and launch of Digital business and achieved sustainable growth with a long-term goal of supporting the creation of healthcare systems that enable the public to efficiently access high-quality healthcare. With the transfer of ownership to CVC Asia V, Sogo will continue to focus on key initiatives to provide high value-added functions and services to both medical institutions and patients, while further integrating the two pillars of medical support business and dispensing pharmacy business with digital business.

Yuji Kimura, Founder, President and CEO of Polaris, added: “Polaris has been fully dedicated to enhancing the corporate value of Sogo by leveraging knowledge and experience gained through numerous past investments in the healthcare sector. Over the past 4 years, Polaris has undertaken the pivotal decision to delist Sogo, successfully navigating the unprecedented challenges posed by Covid-19 pandemic and implementing various reforms to propel the company to new heights, unburdened by any constraints. I would like to express my sincere gratitude to everyone at Sogo for their tireless efforts to date and extend my best wishes to all as they embark on the next stage of growth.”

Atsushi Akaike, Managing Partner and Co-Head of CVC Japan, commented: “We believe that under Polaris’s ownership, Sogo has strengthened its existing businesses and achieved substantial growth. At CVC we have extensive experience of supporting healthcare businesses to achieve their growth ambitions and we are looking forward to working together with Sogo as one to continue its development and expansion, while making sure we uphold the company’s long-term philosophy.”