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Jan 12, 2022 - Economy & Business

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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