Joint custody M&A is trending: TPG’s WellSky, Clearlake’s Symplr

Clearlake is mulling a minority stake sale or 50-50 joint ownership structure for Symplr.

Happy Thursday, everybody!

The long game

We’re seeing the acceleration of one private equity phenomenon: More and more firms are selling partial stakes and bringing in new PE partners to continue riding growth in companies. At the same time, 50-50 ownership structures seem to be more commonplace than ever.

That trend has nothing in particular to do with healthcare. But generally, more and more firms are doing this. Think… Clearlake Capital, TPG, TA Associates, Welsh, Carson, Anderson & Stowe, Vista Equity.

If you’ve been following recent activity in healthcare technology, you may have noticed.

Just in: One of those firms — Santa Monica’s Clearlake — is considering a minority stake sale or 50-50 joint ownership structure for Symplr. Clearlake bought the healthcare governance, risk and compliance software company less than two years ago. For price expectations and more, check out my full story.

The process comes amid Leonard Green & Partners pending $3 billion-plus deal for TPG’s WellSky, marking one of the largest HCIT deals of the year. LGP and TPG are set to each hold 50 percent stakes in the post-acute care software company, sources told me. Read more.

TPG explored a variety of transactions, but it ultimately became clear that a 50-50 structure was the most attractive opportunity for all parties, Nehal Raj, who co-led the deal at TPG alongside Jeff Rhodes, told me.

Besides providing continuity for the company by remaining invested, “we [TPG] saw a lot of opportunity ahead for the company and so to remain invested was very attractive. The go-forward returns should be very strong.”

For more on the 50-50 strategy, read my column here.

Top Scoops
In other news… Blackstone Group’s HealthEdge is getting into the payment integrity business, snapping up The Burgess Group on its mission to automating the full transactional system for health plans.

“Our long-term goal: Point-of-care transaction processing for health plans,” HealthEdge CEO Steve Krupa told me in interview. “We’ve built the infrastructure and the configurability within our system to be able to do that. That’s where we are headed and that’s our goal.”

The Burgess Group has long been a target of private equity and strategic buyers – namely, major national payers – but the company was never an eager seller, sources told PE Hub.

Stay tuned for my full story on the Blackstone’s HealthEdge later today.

That’s it for now. As always, reach me at springle@buyoutsinsider.com with any tips, feedback or just to say hello.