We’ve got a whole bunch of deal news this morning, starting with the marriage of New Mountain’s Ciox and Datavant, which values the combined health data connectivity behemoth at $7 billion.
In conjunction with the merger, Sixth Street is leading a structured investment in the combined company alongside Goldman Sachs Asset Management via its West Street Strategic Solutions fund, sources told PE Hub. Sources likened the deal’s structure to New Mountain’s (now public) Avantor. Read PE Hub’s report and a news release confirming the transaction this morning.
For Sixth Street, Ciox-Datavant represents the first investment led by Marty Chavez since he joined the firm as vice-chairman and partner in May. Chavez is the former CIO and CFO of Goldman Sachs.
The deal is set to dramatically transform the growth trajectory at Ciox, which has already built an expansive network for the exchange of clinical data.
Datavant’s tokenization software, successfully used since 2014, connects health datasets of de-identified patient records – meaning medical data is stripped of any information that can be used to identify an individual. It ultimately helps life sciences and healthcare organizations safely connect their data in a HIPPA-compliant manner.
In other healthcare technology updates… I’ve got more on what PE Hub has learned was an around $500m investment from Warburg Pincus into Temasek’s Global Healthcare Exchange. Read it here.
North America debut: Intermediate Capital Group’s North American PE team has closed its first investment, acquiring Gil-Bar Industries, a large custom HVAC solution provider serving builders in the Northeast.
Gil-bar generated $175 million in revenue last year working alongside construction managers and architects on building projects, sources told PE Hub. The deal, which closed in April, included debt alongside almost $100 million in equity deployed from ICG’s balance sheet, they said. ICG’s typical check size is between $50 million to $150 million.
Not only is Gil-bar ICG’s first North American deal, it is the first time a PE firm has backed a business in this subsector, according to Uzair Dossani, who joined the firm last February from Harvest Partners.
Unlike other PE-backed HVAC platforms, Gil-Bar isn’t a pure-play service business; it is focused on design engineering and sourcing – a business model more technical and complex, Dossani said.
Tech: Alas, it wouldn’t be a full news cycle without more tech-related activity.
HIG Capital has invested in Cleo Communications, a provider of ecosystem integration software that is witnessing rapid growth as e-commerce adoption continues to take off, writes Milana Vinn.
Cleo, based in Rockford, Illinois, provides its clients business agility, accelerates partner onboarding, automates key business processes, and captures new revenue streams through application, B2B, and data integration technologies.
“To compete successfully, companies across industries need to master increasingly complex B2B information flows and integrate the applications running the enterprise. Cleo has the platform that helps its clients meet these challenges,” said Timur Akazhanov, managing director of HIG.
The new platform investment comes as HIG runs a sale process for IT services provider Trace3, PE Hub reported recently.
That’s it! Have a great week ahead, everybody, and in the meantime, write to me at email@example.com with any tips, comments or just to say hello!