GTCR-backed Cedar Gate Technologies acquired Deerwalk, Inc., a software-as-a-service data and analytics business focused on the healthcare payer market. GTCR backs Cedar Gate in partnership with CEO David Snow. Snow is the former chairman and CEO of Medco.
GTCR, a leading private equity firm, announced today that its Cedar Gate Technologies (“Cedar Gate”) management partnership with CEO David Snow has acquired Deerwalk, Inc. (“Deerwalk”). Deerwalk is a high-growth, software-as-a-service (SaaS) data and analytics vendor focused on the healthcare payer market, including health plans and self-insured employers, along with their third-party plan administrators and brokers. Deerwalk’s software solution is highly complementary with Cedar Gate, providing a user-friendly data aggregation and analytics solution that provides actionable insights and savings recommendations to lower healthcare spend while helping to deliver excellent clinical outcomes.
Cedar Gate is a Leaders StrategyTM partnership between GTCR and Mr. Snow, a 35-year veteran of the healthcare industry and former Chairman and CEO of Medco, that was established with the strategy of building a market-leading healthcare technology company to help the healthcare industry shift to value-based reimbursement from traditional fee-for-service. The Deerwalk add-on acquisition, Cedar Gate’s third add-on acquisition over the last three years, further expands Cedar Gate’s enterprise technology solution into the self-insured employer market.
Under Mr. Snow’s leadership, Cedar Gate has pursued a dual strategy of M&A as well as internal software development to build a unique, high-growth enterprise software solution that enables healthcare providers, payors and self-insured employers to operate within the shifting healthcare payments landscape. Cedar Gate launched its internally-developed SaaS analytics suite, ISAACTM, in 2016 to provide healthcare providers, payors and self-insured employers with the ability to evaluate the cost and quality of care within their healthcare delivery network. Over the last three years, Cedar Gate has also made several strategic add-on acquisitions to build its enterprise software solution, which today includes the capabilities to manage any risk-based healthcare reimbursement contract, including the design, implementation and administration of bundled payments and fully capitulated contracts. Cedar Gate’s comprehensive platform today serves healthcare providers, payers and self-insured employers who are looking to reduce healthcare costs and improve the quality of care.
“Deerwalk’s SaaS solutions and capabilities are highly complementary to our current platforms,” said David B Snow Jr., Chief Executive Officer at Cedar Gate. “Together, we enhance our ability to deliver end-to-end analytics, technologies, reporting, reconciliation and administrative services to any entity taking or managing healthcare risk. Today, we are the only vendor that offers a comprehensive solution for payers and providers at risk for the healthcare dollar.”
Dean Mihas, Managing Director at GTCR, added: “Cedar Gate’s acquisition of Deerwalk is another great example of our continued commitment to the Leaders StrategyTM. Over the last several years, we have built a unique, high-growth asset within the healthcare technology market. Given Cedar Gate’s capabilities, position and scale, we believe it’s well-positioned for continued growth under Dave’s leadership.”
“We view the acquisition of Deerwalk as highly strategic, as it expands the combined company’s data aggregation and analytics capabilities and end-market reach,” added Sean Cunningham, Managing Director at GTCR. “We look forward to continuing to support Dave and the combined Cedar Gate and Deerwalk team as they further build out their unique software solution to help the healthcare industry shift toward value-based reimbursement.”
Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Financial Services & Technology, Healthcare, 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 $18 billion in over 200 companies. For more information, please visit www.gtcr.com
About Cedar Gate Technologies
Cedar Gate Technologies is a leading value-based care performance management company founded by David B. Snow Jr., a nationally recognized Fortune 50 CEO, in partnership with GTCR, a leading Chicago-based private equity firm. Cedar Gate provides high-performance analytic, technological, administrative and advisory services to providers, payers and self-insured employers to exceed performance thresholds of value-based care contracts, networks and programs. Based in Greenwich, Connecticut, Cedar Gate leverages its deep healthcare expertise and nationally-recognized platform to deliver end-to-end systems and services empowering any healthcare organization, at any point on the value-based care continuum, to excel at value-based care. To learn more, please visit www.cedargate.com.
Deerwalk is an innovative population health management, data management, and healthcare analytics software company based in Lexington, Massachusetts. Founded in 2010, Deerwalk is privately held with over 300 employees worldwide, including a technology campus in Kathmandu, Nepal. Deerwalk partners with industry leaders responsible for making decisions for the health of a population to optimize costs and improve the quality of care. Deerwalk offers a complete population health management suite built on a foundation of data integrity that delivers reliable data insights and actionable intelligence. To learn more, visit www.deerwalk.com.