GTCR’s Transaction Data Systems gears up for potential sale

William Blair and Harris Williams have been engaged to run an upcoming process for the pharmacy management software company.

GTCR is exploring the sale of Transaction Data Systems, the country’s largest provider of software specializing in independent pharmacy management, according to four people familiar with the matter.

William Blair and Harris Williams have been retained on the sell-side, however a sale process for the Earth City, Missouri-headquartered company has yet to kick off. 

Sources placed the company’s EBITDA around the high $50 million range, but said it’s too soon to speculate where value will pan out. The potential buyer pool could include both private equity firms and strategic suitors, they said. 

Chicago’s GTCR in June 2015 invested in Transaction Data Systems, which does business as Rx30, and has since grown the platform through M&A. Today its branded products and services have grown to include Computer-Rx, Enhanced Medication Services, and PharmAssess.

The company operates a recurring revenue model, with various software solutions that enable insurance claims processing, e-prescription connectivity, pharmacy workflow management and other critical functions for its pharmacist customers.

In relevant activity this year, Francisco Partners in March agreed to buy pharmacy technology company Smith Technologies, a subsidiary of J M Smith Corp. 

Newly rebranded as RedSail Technologies, the business serves healthcare, governmental and public sector customers under the QS/1, Integra and PUBLIQ Software brands. 

In recent exits for GTCR, the firm this summer sold Optimal Blue in a $1.8 billion deal, about four years after committing $350 million in equity into the technology company. 

The firm has also participated in 2020’s SPAC craze. In August, GTCR’s Paya agreed to merge with FinTech Acquisition Corp. III, a blank check company. The enterprise value of the combined company is about $1.3 billion. GTCR will remain the largest stockholder in the integrated payments provider upon completion of the deal.

GTCR declined to comment, while company executives couldn’t immediately be reached. Representatives of William Blair and Harris Williams didn’t return PE Hub’s requests for comment. 

Action Item: Check out GTCR’s latest Form ADV