Funding agency KKR plans to accumulate well being software program firm Remedy Manufacturers. The agency will purchase a majority stake within the firm from earlier buyers Lightyear Capital, Oak HC/FT and Higher Sum Ventures, with PSG remaining a minority shareholder within the firm.
Although KKR didn’t disclose the phrases of the deal, Bloomberg previously reported the agency would pay Remedy Manufacturers for $1.2 billion, together with debt. KKR stated it’s making the funding from its flagship North America personal fairness fund.
“We’re excited to welcome KKR as our new investor, which brings a deep understanding of the healthcare sector and in depth expertise in scaling technology-enabled platforms,” Remedy Manufacturers CEO Kimberly O’Loughlin said in a news release. “This assist will assist us speed up our mission of constructing it simpler for suppliers to navigate an more and more complicated administrative panorama to allow them to spend extra time and give attention to delivering improved outcomes for his or her purchasers.”
Birmingham, Ala.-based Remedy Manufacturers was based in 2013. It supplies digital well being document and apply administration software program for suppliers working in psychological well being, behavioral well being, substance use restoration, utilized conduct evaluation (ABA) and bodily rehabilitation.
A few of its better-known manufacturers embrace Theranest, a apply administration software program for small remedy teams, and ShareNote, for bigger practices. It really works with greater than 28,000 practices throughout the U.S.
Remedy Manufacturers additionally presents a telehealth platform. Shortly after the U.S. declared the pandemic a nationwide emergency, the corporate stated that it saw use of its telehealth services leap 4,300% in comparison with the earlier week.
Buyers’ curiosity in behavioral well being firms has additionally elevated accordingly previously 12 months. It was one of many high funding classes for digital well being firms in the beginning of the 12 months.
KKR isn’t any exception. The agency, which has backed huge manufacturers resembling WebMD and Make clear Well being, has additionally made investments in BrightSpring Well being Companies, which owns house care and behavioral well being practices, and Blue Sprig Pediatrics, a supplier of utilized conduct evaluation (ABA) remedy.
“We’re delighted to be backing Remedy Manufacturers at a time when there’s growing recognition and social consciousness in regards to the significance of psychological well being,” KKR Accomplice Max Lin stated in a information launch.