Healthcare tech poised for another fireworks show: TPG’s WellSky

TPG explores selling WellSky and Lindsay Goldberg's Refresh Mental Health has tapped a financial advisor for an upcoming sale process.

Happy Thursday!

I’m writing to you from the beautiful, wild west of Jackson Hole, Wyoming. I’m off to a family cabin in Grand Teton National Park for the long weekend, where I’ll be sticking to outdoor adventuring and BBQs.

Healthcare technology
It was just a few weeks ago that ICONIQ Capital joined Francisco Partners as an investor in QGenda, bringing the fast-growing workforce-management company’s valuation to $1.05 billion.

Now, another, bigger, healthcare technology deal is brewing.
TPG is exploring the sale of WellSky, the post-acute care software giant formerly known as Mediware. I’ve heard word of a number of large funds that were or remain in the mix, and sources have indicated a deal could come together rather quickly.

With all types of transaction structures considered, the party that comes out on top may come down to how much TPG wants to give up, sources said. On one hand, I’m told, bidders won’t have trouble securing staple financing. On the other hand, bidders have looked at joint-ownership structures leaving TPG with a meaningful stake.

Read my story for financial detail and more context around the process.

Pandemic or no-pandemic, WellSky, with a Software-as-a-Service model, is super stable, super predictable and is growing nicely, sources told me. At the same time, WellSky sits on the right side of healthcare trends: that is, serving less costly and more efficient sites of care outside of the hospital – where patient volume continues to move.

A SaaS type of model means performance is not tied to short-term volumes in underlying end markets, which, for WellSky’s part, haven’t been all that impacted by covid-19, sources said.
Consider providers of home care. On a relative basis, home care companies – medical and non-medical – have held up better through the crisis than hospitals and many healthcare services verticals.

Other notable PE-backed post-acute care software players include Netsmart, a portfolio company of GI Partners and TA Associates. There’s also players like PointClickCare, whose backers include

Dragoneer Investment Group and JMI Equity.
Have you heard any updates on WellSky or any other hot HCIT deals in the works? Shoot me a note at

Top Scoops
Exit: Elsewhere in HCIT… Great Point Partners made 3.8x its money on its sale of Citra, whose technology helps healthcare providers and payers transition to value-based care models, I learned.

From the buyer’s perspective — GTCR, who bought Citra through Cedar Gate Technologies — this model has proven more sustainable amid covid-19, according to John Kos, a principal at the Chicago PE firm. Read my full story for all the deets.

Looking ahead: Lindsay Goldberg’s Refresh Mental Health has tapped a financial advisor for an upcoming sale process. Check out my report for more on the provider of mental health and eating disorder treatment.

On the move: TripleTree, an independent healthcare merchant bank, has appointed Dawn Owens as Chief Executive Officer. Owens joined the bank in 2015 from OptumHealth, where she was CEO for five-plus years.

That’s it for today’s rundown. Enjoy the long weekend, and as always, reach me at with any tips, feedback or just to say hello.