Sequoia-backed SCIO runs another auction

  • TripleTree retained to advise on auction
  • Company marketed off ~$20 mln in EBITDA
  • Sequoia partnered with SCIO in 2007

SCIO Health Analytics, the Sequoia Capital-backed health-analytics firm, is back on the market, Buyouts has learned.

Investment-advisory boutique TripleTree has the mandate to sell West Hartford, Connecticut-based SCIO, two sources said.

While it is uncertain how far along the sales process is, a source told Buyouts in October that an auction was expected to kick off around the November-December time frame after a banker was selected.

SCIO expects to produce close to $20 million in 2018 adjusted EBITDA, sources said.

Sequoia’s investment in SCIO dates to 2007, the same year the company was founded by CEO Siva Namasivayam. New York’s Health Enterprise Partners and India-focused Saama Capital II are also investors in SCIO.

SCIO provides predictive analytics services to insurers, providers and health-service and life-science companies. It collects and interprets data for companies, which it then uses to make recommendations that will drive down costs and improve patient outcomes.

The auction comes a few years after SCIO retained William Blair to explore a potential sale, sources previously said. The process, which one of the people said included mostly strategics, ultimately did not produce a sale. A broader process was expected this time around, this source added.

High customer concentration was an issue in the previous process, two of the sources said, noting that the risk is perceived to have decreased.

SCIO’s associated investment adviser at Sequoia is Shailendra Singh, a managing director based in the firm’s Bengaluru, India, office.

Spokespeople for Sequoia, SCIO and TripleTree didn’t immediately return requests for comment on Thursday.

Action Item: Sequoia’s portfolio: www.sequoiacap.com/companies/

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