Scoop: TPG paid 28x EBITDA multiple for Surescripts
Illustration: Annelise Capossela/Axios
TPG paid 28x EBITDA for its acquisition of Surescripts, valuing the company at about $1.8 billion, sources familiar tell Axios.
Why it matters: The rich multiple indicates top funds are prepared to pay up.
Behind the scenes: Advent International (which owns pharmacy benefits optimizer RxBenefits) was one of the final bidders, putting in a bid for $1.7 billion that TPG ultimately topped, the sources say. Advent declined to comment.
By the numbers: Pharmacy tech company Surescripts projects about $65 million in 2024 adjusted EBITDA, the sources say.
- Projected net revenue in 2024 is roughly $405 million. Adjusted EBITDA and net revenue for 2025 are projected at $75 million and $435 million, respectively, the sources say.
Catch up quick: TPG announced its majority stake acquisition of Surescripts earlier this week.
- TripleTree was sell-side advisor, while JPMorgan, Deutsche Bank and Evercore served on the buy-side.
- Surescripts electronically sends prescription information from physicians to pharmacies, detailing medication histories and providing tools to check prescription coverage.
What we're watching: Surescripts' deal success could inspire peers to come to market or push active processes toward the finish line.
- GI Partners and TA Associates-backed health software company Netsmart Technologies tapped Goldman Sachs and William Blair to explore a sale at the start of the year.
- Electronic medical records data company Veradigm is courting private equity, Axios reported in August.
- Meanwhile, Sixth Street has held e-prescribing company DrFirst since 2020.
Surescripts did not respond to a request for comment. TPG and Advent declined to comment.
