BlackRock Long Term Private Capital buys Transaction Data Systems from GTCR

TDS is LTPC’s fourth investment to date and its second investment in North America.

BlackRock Long Term Private Capital has acquired Transaction Data Systems, which provides adaptive pharmacy management systems and clinical applications that help pharmacies improve operations and workflow, among other things. Previous owner GTCR will remain a minority investor. Keval Health served as financial adviser to BlackRock LTPC, while Harris Williams and William Blair advised TDS. Stifel advised GTCR.

PRESS RELEASE

ST. LOUIS, NEW YORK and CHICAGO – May 17, 2021 – Transaction Data Systems (“TDS”), a leader in pharmacy software solutions and services, today announced that BlackRock Long Term Private Capital (“LTPC”) has acquired a majority interest in the company. TDS’ previous owner, GTCR, will retain a minority interest. LTPC will partner with the TDS management team, led by CEO Jude Dieterman, and GTCR to drive the company’s next phase of growth. 

TDS provides innovative and adaptive pharmacy management systems and clinical applications that help pharmacies improve operations and workflow, expand their businesses, bolster their data analytics, increase patient engagement and drive better healthcare outcomes. With a large and growing installed base of customers across the United States, TDS supports the largest network of independent and community pharmacists in the country. This network enables TDS to help connect the ecosystem of patients, providers, payors and manufacturers through these critical pharmacies and the pharmacists who often provide the first-line of care to patients across the United States.

Jude Dieterman, CEO of Transaction Data Systems, commented, “BlackRock LTPC’s investment in TDS is a testament to our ability to support and deliver for our pharmacy customers and their evolving needs. We look forward to working with the LTPC team to advance our strategic growth objectives and reach more partners across the healthcare ecosystem. We’d like to thank GTCR for their commitment and support in transforming TDS over the past several years.”

GTCR initially acquired TDS and its core Rx30 software platform in June 2015 and subsequently pursued a dual strategy of organic and M&A-driven growth. During GTCR’s ownership period, the company completed six complementary acquisitions of software companies, including two corporate carve-outs, to broaden its product suite and expand its customer base. In addition, TDS meaningfully expanded its data analytics capabilities and created a new medication therapy management product, Enhanced Medication Services powered by Clinical360, to better connect payors and patients, improving medication adherence and clinical outcomes.

Sean Cunningham, Managing Director at GTCR, commented, “GTCR is proud to have supported TDS’ remarkable transformation and growth over the last few years. TDS has solidified its position as an industry leader in the pharmacy technology space, and we look forward to partnering with BlackRock LTPC and continuing to support Jude and the team during the company’s next phase of growth.”

Colm Lanigan, Head of LTPC, Americas, commented, “The pharmacy is the critical first-line of care and Transaction Data Systems has established itself as a leading solution that pharmacists rely upon to serve patients, providers and payors in this important ecosystem. We are excited to partner with Jude Dieterman and his team alongside GTCR to continue the company’s strong growth momentum.”

TDS is LTPC’s fourth investment to date and its second investment in North America. It is highly emblematic of LTPC’s strategy of investing in high-quality businesses with strong, persistent returns on capital, multiple growth paths and best-in-class management teams.

Keval Health served as financial advisor, and Simpson Thacher & Bartlett served as legal advisor to BlackRock LTPC. Harris Williams and William Blair served as financial advisors, and Kirkland and Ellis served as legal advisor to TDS. Stifel served as financial advisor to GTCR.

Terms of the transaction were not disclosed. 

About Transaction Data Systems

For over 40 years, TDS has been dedicated to the success of the pharmacy market and pharmacy supply chain. TDS, with its portfolio of products and services including Rx30, Computer-Rx, KloudScript, Pharm Assess, and Enhanced Medication Services provides innovative technology solutions and pharmacy management systems to the pharmacy industry. Proudly supporting one of the largest install bases of pharmacies in the industry with systems in all 50 states and theVirgin Islands, TDS is the leading provider of pharmacy focused-patent centric solutions. For more information about TDS, please visittransactiondatasystems.com.  

About BlackRock LTPC

BlackRock LTPC is an innovative private equity strategy focused on investing in high-quality businesses and value creation through active collaboration with management teams. The strategy’s flexible duration and prudent approach to leverage preserve optionality for growth and help enable compounded capital appreciation. LTPC’s team of 16 professionals are based in New York and London and invest across North America and Western Europe. LTPC is backed by BlackRock, Inc., which manages $264 billion in alternative investments and commitments on behalf of clients worldwide as of March 31, 2021. For additional information on BlackRock, please visit www.blackrock.com/corporate.

About GTCR

Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Healthcare, Financial Services & Technology, Technology, Media & Telecommunications and Growth Business Services industries. The Chicago-based firm pioneered The Leaders Strategy™ – finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its inception, GTCR has invested more than $20 billion in over 250 companies. For more information, please visit www.gtcr.com.