Central Logic, a software company that improves the management of patient transfers, is nearing a sale to an unknown private equity firm, according to three sources familiar with the sale process.
Ziegler, a boutique healthcare investment bank, is providing financial advice on the sale, the sources said.
The majority recapitalization is expected to value the Sandy, Utah-based company north of $100 million, two sources said. One said the company hoped to fetch between $110 million to $125 million.
A third source placed annual recurring revenue at approximately $20 million.
The process launched pre-pandemic with initial bids from a large group of PE buyers submitted in mid-March, sources said. Unlike many auctions that were put indefinitely on hold when covid-19 escalated, the process for Central Logic carried on.
The auction recently narrowed following virtual management presentations, they said. According to one of the people, the company entered into exclusivity with a private equity group.
Led by CEO Angie Franks, Central Logic’s software-as-a-service manages patient transfers, provides visibility into bed capacity, offers integrated physician and provider scheduling, as well as automates patient transport requests and provides analytics.
Simply put, Central Logic helps hospitals solve bottlenecks in the healthcare system, improving processes and communication around the transferring of patients and doctor referrals.
In the wake of covid-19, the company says it helps health systems and states avoid unnecessary care delays for patients with covid-19. It does this by enabling faster approvals for transfers and hospital admissions and by preventing patients from being inadvertently transferred to facilities without available beds, or with inadequate equipment or insufficient provider staffing.
The company has raised $14.4 million in venture funding to date, according to Crunchbase.
The expected transaction comes as another company in the business of improving productivity in the healthcare system kicks off a sale process.
Francisco Partners is pursuing the sale of QGenda, a SaaS provider that helps doctors optimize scheduling processes, PE Hub wrote earlier this week. Evercore is advising on the auction.
Central Logic and Ziegler did not return requests for comment.
Action Item: Read more about the QGenda sale process.