PE HUB Healthcare Wire Highlights, 8.9.18


Pamplona Capital, private equity, healthcare,
Sarah Pringle of Buyouts. Photo by Robert Daniel, Buyouts.

Behind Vista’s victory for the prized Alegeus

Happy Thursday!

I just finished reading “Bad Blood”, which chronicles the rise and fall of Elizabeth Holmes and her multibillion-dollar blood-testing startup, Theranos … And, oh, my god, I couldn’t put it down. Who is available to discuss?

Besides getting immersed in the secrets of the Silicon Valley unicorn, I spent more time than usual thinking about the lab-testing universe this week.

That’s in large part because I learned about one PE-backed asset back in the market. Aurora Diagnostics, the anatomic pathology and cancer diagnostics company, is in the early-stages of an auction, I’ve learned. The Summit Partners– andKRG Capital– backed company has a pretty interesting history. Read my story for all the deets.

But there was lots of news this week – between GoodRx adding Silver Lake to its investor roster and AllScripts revealing plans to unload its stake in NetSmart, just two years after teaming up with GI Partners to buy the healthcare IT company … let’s get right to it!

Vista comes out on top

In one highly anticipated deal this week, Vista Equity prevailed in the auction for Lightyear Capital’s Alegeus, which helps administer healthcare-benefit accounts.

The private equity victory may surprise some. Based upon valuation expectations, sources seemed confident a few months back that the asset would find a buyer in one of the strategic contenders.

On the other hand, one source this week described Alegeus as a binary play for strategics. If HealthEquity or Wex had bought the company, it would have taken out a competitor and gained market share, but it wouldn’t be inheriting a new technology or capability.

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