Clearlake’s Symplr pays close to $300 mln for Veritas’s API Healthcare

  • Veritas acquired API last July via $1.05 bln carveout of GE healthcare IT assets
  • Sell-side adviser: Blair; buy-side adviser: Baird
  • API during GE process fielded carveout bids >$300 mln

Veritas Capital’s pending sale of API Healthcare to Clearlake Capital Group’s Symplr is valued between the high $200 million range and $300 million, according to two people with knowledge of the situation.

Symplr, a healthcare-credentialing company, said Feb. 20 that it had agreed to buy API, becoming the workforce-management-software company’s third owner in less than six years.

Buyouts previously reported that API was in the market, identifying Symplr and the U.K.’s Allocate Software, a portfolio company of Vista Equity Partners and Hg, as the most likely suitors.

William Blair offered sell-side advice on the transaction, while Robert W. Baird advised on the buy side.

The deal comes about seven months after Veritas purchased API as part of its $1.05 billion carveout of healthcare IT assets from General Electric. Besides API, the New York firm scooped up GE’s enterprise financial management and ambulatory care management businesses.

One of the people placed API’s valuation in the high $200 million range and the second placed it at about $300 million. That suggests API commanded less than the low $300 million range for which it fielded carveout bids during GE’s 2018 sales process.

The API division at the time was marketed off revenue and adjusted pro-forma Ebitda just north of $90 million and $25 million, respectively, two people familiar with the matter previously said.

GE during the 2018 process favored selling the hodgepodge of healthcare IT assets in a single deal; however, the tremendous interest that API fielded ultimately led it to consider a piecemeal sale, Buyouts reported.

API was perceived as the crown jewel amid the group of assets up for sale in 2018, though the division’s performance had languished under the conglomerate, three people previously said.

GE bought API from Francisco Partners in January 2014, a few years after API abandoned its deal with Kronos, a Hellman & Friedman and JMI Equity portfolio company, due to antitrust concerns.

API, led by Bill Christy, interim president and CEO, helps hospitals and medical clinics manage their workforces and track patients.

The buyer, Symplr, helps healthcare providers manage the credentials of physicians, visitors, staff and contractors, ensuring regulatory compliance.

Symplr agreed to be acquired by Clearlake, Santa Monica, California, only four months ago, scoring an enterprise value of about $550 million in the sale, Buyouts reported.

From a strategic perspective, Symplr’s massive amount of credentialing data could be married with API’s employment-type data, offering growth into new avenues, one source said.

For example, companies might be able to look at compensation on physician employment contracts and tie that to the number of actual hours worked and patient reimbursement levels. They could also potentially use the data to address physician and nursing burnout, the source suggested.

Action Item: Reach out to Clearlake at +1 310-400-8800