Mediware gets new PE owner

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Wednesday, December 21, 2016

LENEXA, Kan. – TPG Capital, the private equity fund of alternative asset firm TPG, has entered into a definitive agreement to acquire Mediware Information Systems from private equity firm Thoma Bravo.

San Francisco-based TPG, which has more than $74 billion in assets under management, says it sees “tremendous opportunity” in the healthcare IT sector as patient volumes move outside the four walls of hospitals, requiring investment in software to automate clinical and administrative functions in non-acute settings.

“Mediware is well-positioned to benefit from these trends,” said Nehal Raj, partner at TPG, in a press release. “We look forward to working together with the Mediware team to build the market-leading non-acute care and human services software platform.”

TPG is no stranger to the healthcare IT sector. The firm has previously invested in companies like Evolent Health, IMS Health and Quintiles. It has also invested in software companies, including vertical market leaders like Advent Software, CC Information Services, Eze Software, Intergraph, Mashall & Swift, Sabre, Transporeon and Vertafore.

Mediware believes its new owner will help the company further advance its market position and bolster long-term growth.

“In partnering with TPG, Mediware will have access to substantial expertise and resources that will help us continue to build on the momentum we have experienced over the past four years,” said Thomas Mann, president and CEO of Mediware, in the release.

Thoma Bravo bought Mediware in 2012 for $195 million. Mann calls the Chicago-based private equity firm “a strong partner” that was central to the company’s success over the last four years, providing significant investment, industry experience and guidance.

“Their support has helped us accelerate our growth and complete important strategic acquisitions,” he said.

Mediware acquired Fastrack and Definitive Homecare Solutions in 2013, significantly strengthening its position in the HME, home infusion and home health markets. It also bought CareCentric’s HME, home infusion and home health software businesses in 2011.

In 2015, Mediware released CareTend, a new software solution that combined the features of all of its homecare solutions into one platform.

TPG expects to close on the deal in the first quarter of 2017. Additional terms were not disclosed.