Francisco Partners is evaluating the sale of QGenda, whose software helps doctors optimize scheduling processes, according to four sources familiar with the matter.
Evercore is providing financial advice on the process, some of the people said. The process is just kicking off and unlikely to move forward in any rush given the environment, a third person said.
Select private equity firms and strategics that focus on workforce management, including PE-backed platforms, are likely to participate, sources said.
Two of the sources placed EBITDA and revenue at approximately $25 million and $75 million, respectively.
Headquartered in Atlanta, QGenda provides workforce management software to private practices to more than 3,000 customers across more than 30 medical specialties, academic medical centers, management services organizations and hospitals and health systems. The software-as-a-service provider helps doctor groups and their staff optimize scheduling processes, reduce labor expenses and improve provider performance.
Led by founding CEO Greg Benoit, QGenda received a strategic growth equity investment from Francisco Partners, a technology-focused private equity firm, in February 2016. Raymond James advised the company on the sale.
Although valuing any company today is no easy feat, those in the business of improving productivity in healthcare, such as QGenda, have been among the strongest performing assets across healthcare technology since the economic downturn hit, sources have said.
Workforce management could be considered even more important post-pandemic as hospitals and practice groups emphasize improved processes to reduce expenses.
On the other hand, one person cautioned that in the near-term it’s unclear if hospitals will be able to install these products given workforce disruptions.
Deal flow in the space has persisted through the downturn.
Just last month, Marlin Equity Partners completed a growth investment in SmartLinx Solutions, which provides workforce management tools for skilled nursing, senior living and post-acute care providers.
In other notable activity, Clearlake Capital Group’s Symplr, a healthcare-credentialing company, gained a foothold in workforce-management through its February 2019 purchase of API Healthcare from Veritas Capital. The deal was valued between the high-$200 million range and $300 million, sources familiar with the matter told PE Hub at the time.
Clearlake bought Symplr about four months earlier for an enterprise value of about $550 million, PE Hub previously wrote.
API is also a former portfolio company of Francisco Partners. General Electric 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.
Veritas inherited API as part of its $1.05 billion carveout of healthcare IT assets from GE in 2018.
Francisco Partners did not return requests for comment. Evercore declined to comment and company executives could not be reached.
Action Item: Check out Francisco Partners’ latest Form ADV