Jan 12, 2022 - Economy

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

Sarah Pringle

Animated illustration of a health cross with 0s and 1s running across, some sequences are highlighted as malware. — Illustration: Aïda Amer/Axios

Private equity firm GTCR is nearing a deal to acquire Experity, the country's largest electronic health records company for the urgent care market, from Warburg Pincus, four sources tell Axios.

What's happening: The transaction is expected to value the company at between $1.2 billion and $1.3 billion, translating to an EBITDA multiple in the high teens, although no deal has yet been signed.

William Blair is advising the sellers.
Warburg declined to comment. GTCR, Experity and William Blair couldn't immediately be reached.

Why it matters: This 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 Experity.

The global health crisis has led more patients to recognize urgent care as a convenient way to receive on-demand care, particularly versus hospital ERs, but it's hard to determine how much of that demand will stick.
Experity boasts that it provides EMR and practice management software, along with other tech solutions, to more than 50% of U.S. urgent care clinics.

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

Experity's technology serves 5,700-plus clinics today, up from 1,300-plus when Warburg first backed DocuTap in May 2016.

The 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.

Sarah is co-authoring our upcoming Axios Pro newsletter on health tech deals. Subscribe at AxiosPro.com.

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

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