Clearlake buys healthcare SaaS company Symplr for about $550 mln

  • Some expected SaaS company to go for $600 mln or more
  • Symplr helps providers manage credentials of doctors, staff
  • Sell-side adviser: William Blair

Clearlake Capital Group’s agreement to buy Symplr has assigned the provider of healthcare-credentialing software an enterprise value of about $550 million, according to a source familiar with the situation.

The transaction comes about three months after Buyouts reported that Symplr, backed by Pamlico Capital and CapStreet Group, had hired William Blair to explore a sale.

Financial terms were not disclosed in the Oct. 23 announcement.

The valuation falls below price expectations ahead of the process, which sources in July told Buyouts were around $600 million or more.

The auction was expected to be a broad one involving both private equity and strategics, they said at the time.

Symplr, Houston, provides software-as-a-service to help healthcare providers track and manage the credentials of physicians, visitors, staff and contractors, ensuring regulatory compliance and mitigating risks for providers.

In other words, physician information is submitted to insurers and is used to ensure that providers are up to date with the necessary credentials and licenses. The company’s products include Cactus and Vistar.

Symplr serves more than 1,500 customers and more than 4,000 healthcare facilities in North America.

Competitors include Echo, HealthStream’s medical-staff-credentialing arm, as well as Aperture, a spinoff of Humana.

Symplr will continue to be led by CEO Rick Pleczko and CFO Tres Thompson, the announcement said.

Pamlico’s investment in Symplr dates to November 2015, when the Charlotte, North Carolina, firm recapitalized the company alongside existing investors including CapStreet.

Symplr was the seventh investment out of Pamlico’s third fund, which closed at $650 million in October 2013.

Houston’s CapStreet initially invested in Symplr in 2012.

Clearlake, based in Santa Monica, Calif., closed on a fifth fund of more than $3.6 billion in March. The buyout firm focuses on the industrials and energy; software and technology-enabled services; and consumer industries.

In other healthcare activity, Clearlake in March bought Provation Medical, the health division of information-services giant Wolters Kluwer.

Provation’s software helps physicians and other healthcare professionals document medical procedures more efficiently.

Triple Tree and Harris Williams provided financial advice to Clearlake on the transaction.

Action Item: View the rest of Clearlake’s portfolio: www.clearlakecapital.com/portfolio.html