Scoop: Trivest-backed ScanSTAT starts sale process
Illustration: Rebecca Zisser / Axios
A sale process has kicked off for Trivest Partners-backed ScanSTAT Technologies, a provider of release-of-information solutions, multiple sources tell Axios.
Why it matters: ScanSTAT sits in the middle of a growing and evolving industry, with hospitals and health care providers demanding quicker access to patient information that's both accurate and compliant, as disconnected systems capture enormous amounts of data.
What's happening: Books are out for the Guggenheim Partners-run sale process, sources say.
- ScanSTAT is projecting $26 million of pro forma adjusted EBITDA and $84 million of pro forma revenue for 2022, sources say.
- Top line CAGR is 22% over the last five years, they say, adding that the company has low customer concentration.
State of play: Besides a large M&A opportunity on the release-of-information side, industry players are increasingly diversifying and consolidating health information management offerings to transform the growth trajectory.
- ScanSTAT, for its part, also plays in prior authorization streamlining, inbound document management, chart abstraction, and structured data entry.
Yes, and: We're also seeing companies leverage their access to real-world data to segue into use cases for health analytics. Notably:
- Ciox Health, which, backed by New Mountain Capital, merged with Datavant last year at a $7 billion valuation — marrying Ciox's clinical data exchange network with Datavant's tokenization software used for the de-identification of patient records.
Separately, other release-of-information companies that have achieved good scale include:
- Verisma, which NewSpring Healthcare (NewSpring's dedicated health care strategy) recapitalized in December 2021 through a continuation vehicle.
- MRO, which Parthenon Capital backed in 2019, providing an exit for Imperial Capital.
The other side: It's not uncommon for release-of-information companies to face lawsuits around the fees they generate to retrieve and produce requested patient medical records.
Trivest, ScanSTAT and Guggenheim did not return requests for comment.