Illustration: Shoshana Gordon/Axios
Francisco Partners will pay about $1.13 billion to acquire AdvancedMD from Global Payments (NYSE: GPN).
Why it matters: The health care IT deal train keeps rolling as processes launched earlier this year finally get inked.
Inside the room: The business was marketed off $105 million of EBITDA, a source tells Axios, which would imply a deal multiple between 10x and 11x.
- Global Payments declined to comment. Francisco Partners did not respond to a request for comment.
Between the lines: Global Payments initially wanted a lot more for the unit, targeting a $3 billion price tag, Fortune reported in March.
What's next: The transaction is expected to close in 4Q24.
How it works: The cloud-based software-as-a-service is used by small- to medium-sized ambulatory physician practices in the U.S.
- It assists independent physician practices with electronic health records and revenue cycle management services. It has around 800 employees.
Catch up quick: Founded in 1999, the South Jordan, Utah, company has been under a handful of PE and strategic owners.
- Global Payments acquired the business for $700 million in 2018 from Marlin Equity Partners.
- Meanwhile, this is Francisco Partners' second time on the ride. The sponsor invested in AdvancedMD in 2008 before selling it to Automatic Data Processing (Nasdaq: ADP) in 2011.
What we're watching: Bain- and Parthenon-backed Zelis is nearing a minority stake deal with Mubadala, valuing the health care payments behemoth at $17 billion.
