Great Hill’s Quantum Health awaits final bids, GHO’s Envision adds Two Labs, Cano opts for SPAC over sponsor sale

Great Hill Partners awaits final bids for Quantum Health and Bain Capital Tech Opportunties agrees to buy and merge HST Pathways and Casetabs.

It’s Thursday, everybody.

Lots of news to get to today, but first, a note to readers about some ongoing changes. As you likely have seen, we’ve taken steps to consolidate our newsletter commentary into a new premium version of the PE Hub Wire.

Starting next week, that change will extend to this product as well. Registered users will begin receiving a streamlined version of this newsletter; our insight on M&A in the healthcare, tech and other industries will shift to the subscriber-only premium Wire. Thank you for your readership and if you haven’t already, we hope you’ll consider subscribing to PE Hub!

Now, to today’s news.
This just in: Great Hill Partners is awaiting final bids for Quantum Health, sources familiar with the matter told PE Hub. While the self-insured employer benefits arena has surfaced as an increasingly hot area of investment, I’m told Quantum in particular saw interest accelerate amid the strong performance of its publicly traded peer, Accolade – which is trading at a low teens revenue multiple.
Read my full report for financial detail and more.

Great Hill, if you haven’t noticed, has made quite a mark in the employer healthcare benefits services universe. Including Quantum, the Boston growth equity firm has now invested in five businesses in the space so far. That includes RxBenefits, which earlier this month brought on Advent International as an additional investor in the business, I wrote. Read more.

Pharma commercialization: Another area of healthcare that has remained busy is the pharma services industry. This week I learned that GHO Capital-backed Envision Pharma Group is getting into the business of pharma commercialization through the acquisition of Two Labs, concluding a Baird-run sale process. Read my story for valuation info and more.

The pharma commercialization vertical in which Two Labs plays is a large and very fragmented space – and there are lots of ways to play the market, I’m told. You can be a traditional agency, a consultancy firm, or, like Envision Pharma Group, play on the communication services side of things.

Whatever your approach, big funds Like London’s GHO are planting a flag and buying stuff around it. Other players like CD&R, which earlier this year bought medical affairs firm Huntsworth for £575 million ($755 million), are doing the same thing in their own way.

It’s also worth noting that the continued strength of the pharma services arena is not due to a “covid bump,” sources tell me. Rather, outsourced pharma services are playing on long-term themes driven by the needs of specialty pharma and cell and gene therapy.

Top Scoops
In one of the week’s biggest shocks to the healthcare market, Cano Health, a primary care provider serving seniors in the Medicare Advantage market, has agreed to a $4.4 billion merger with Jaws Acquisition Corp., a SPAC sponsored by real estate investor Barry Sternlicht.

Check out my two cents on the deal in today’s PE Hub wire and read my recent coverage on the business, which fielded final round bids from sponsors last month.

In other notable activity, Bain Capital Tech Opportunties simultaneously agreed to buy and merge HST Pathways and Casetabs, two cloud-based software providers specializing in the ambulatory surgery center market, I wrote. Check out my full report.

That’s it for me today. As always, write to me with any feedback, tips or just to say hello!