Silver Lake Sumeru’s Influence Health taps Houlihan Lokey for sale

Private equity-backed healthcare IT firm Influence Health has retained Houlihan Lokey to explore a sale, Buyouts has learned.

The process comes five-plus years after Silver Lake Sumeru acquired the company, then known as MedSeek, alongside Essex Woodlands Health Ventures and management. Council Capital exited its investment in connection with the May 2012 deal.

The middle-market investment arm of Silver Lake made the investment out of Sumeru’s debut fund, which closed in 2008 with $1.1 billion in commitments.

Financial terms of the 2012 transaction weren’t disclosed, but Buyouts reported at the time that Sumeru invested about $100 million in the all-equity transaction. Raymond James advised on the previous sale.

Founded in 1996, Influence Health provides customer-relationship management software that hospitals use to attract and retain patients. It also provides online portals through which patients and doctors can communicate to better manage care. The problem is these portals carry significant risk, as they are the primary means through which hospitals face security breaches, one source familiar with the matter noted.

Influence Health also competes with large electronic-medical-record vendors such as Epic Systems and publicly traded Cerner Corp, which offer patient portals for patient engagement as part of their suite of services.

While that likely makes it a tough sell for sponsors, a strategic the likes of Constellation Software may be interested in Influence Health for its customer base and care-coordination base, the source said.

Michael Nolte, a former MedAssets exec, was appointed CEO of Influence Health in April 2016. Silver Lake Sumeru Managing Director John Brennan is Influence’s chairman.

Representatives of Silver Lake and Houlihan Lokey declined comment.

Action Item: Sumeru’s ouportfolio: www.silverlake.com/portfolio/sumeru/CurrentInvestments/Sumeru/

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