Scoop: GTCR nears $1.3 billion deal for electronic health records company Experity

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Private equity firm GTCR is close to a deal to acquire Xperity, the nation’s largest electronic health records company for the urgent care market, from Warburg Pincus, four sources tell Nerdshala.

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What is happening: The transaction is expected to value the company between $1.2 billion and $1.3 billion, which translates into an EBITDA multiple in the high teens, although no deals have been signed yet.

  • William Blair is advising sellers.
  • Warburg declined to comment. GTCR, Anubhav and William Blair could not be immediately contacted.

Why this matters: It comes as urgent care clinics experience a pandemic-fueled boon in patient visits due to COVID testing, which ultimately benefits end-market tech companies like Xperity.

  • The global health crisis has led more patients to recognize urgent care as a convenient way to get on-demand care, particularly versus the hospital ER, but it is hard to determine how long this demand will last.
  • Xperity claims it provides EMR and practice management software, along with other technology solutions, to more than 50% of US urgent care clinics.

Flashback: Warburg, a prolific investor in health tech, merged DocTap and Practice Velocity in May 2019 to create experience.

  • Xperity’s technology today serves more than 5,700 clinics, up from 1,300 when Warburg first supported DocTap in May 2016.

Bottom-line: Investors see a lot of runway behind the digitization of health records and billing, as evidenced by last month’s $17 billion deal for AthenaHealth.

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Sarah is co-writing our upcoming Nerdshala Pro newsletter on health tech deals. subscribe,

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