Colorado private equity firm Rubicon Technology Partners has struck a majority investment in Central Logic, a software company that manages patient transfers across healthcare organizations.
Financial terms haven’t been disclosed, but sources close to the process told PE Hub last week that the majority recapitalization was expected to value the Sandy, Utah, company north of $100 million. One source said Central Logic hoped to fetch a value in the $110 million to $125 million range.
Both parties declined to comment on financial aspects of the deal, but said the strategic investment will be used to fuel growth at Central Logic through product innovation, sales expansion, delivery and customer support and the pursuit of acquisition opportunities.
For Rubicon, which invests exclusively in enterprise software companies, the investment appears to be its first platform investment serving exclusively the healthcare end-market.
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 the pandemic, the company has said it helps health systems and states avoid unnecessary care delays for patients with covid-19. “The pandemic that we now face sheds a light on the enormous gap in care orchestration and patient logistics at healthcare organizations of all sizes,” said Franks.
“The company’s highly differentiated and category-defining solution is perfectly positioned in the market for this unique time in the industry. Central Logic’s proven ability to capture market share provides a strong foundation for continued growth, which we plan to aggressively drive with additional cash investment into the business,” added Alex Kleiner, principal at Rubicon.
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 recently wrote. Evercore is advising on the auction.
Action Item: Read more about the QGenda sale process.