TA, Five Arrows-backed RLDatix wins auction for Hg, Vista-backed Allocate, Wellspring’s rebranded RAYUS Radiology is on a fast consolidation track 

Vista and Hg sell Allocate to RLDatix while Wellspring’s rebranded RAYUS consolidates radiology market.

Happy Monday!

RLDatix, backed by TA Associates and Five Arrows Capital, said Monday it is buying Allocate Software — just a few days after PE Hub wrote the healthcare-focused workforce management SaaS business had fielded its latest round of bids.

Allocate’s current owners are Hg and Vista Equity.

The deal expands RLDatix’s governance, risk and compliance platform.

Allocate’s workforce management solutions are set to accelerate RL Datix’s framework to shift healthcare from reactive risk management to proactive prevention, an announcement said.

Financial terms weren’t disclosed, but sources recently told PE Hub the William Blair and Arma Partners-conducted sale process was expected to produce a deal value in the $1.3 billion to $1.5 billion range, or in the low £900 million range to up to some £1.1 billion (applying a 20x-25x EBITDA multiple).

TA joined Five Arrows as an investor in RLDatix in early March, and the platform has remained an active consolidator in the popular GRC sector since that time. In February it bought Ecteon, a provider of contract management solutions, and in October it scooped up Verge Health, a credentialing software provider.

If we’re talking healthcare GRC … other leading companies to watch include Clearlake Capital’s Symplr, which recently returned to market to explore its own options. The sellers, working with Evercore, Goldman Sachs and William Blair, expect to command a more-than $4bn valuation in a potential transaction, PE Hub recently wrote.

Check out Hg’s press releaseRLDatix’s announcement, and my previous coverage for more info on Allocate.

Growth mode: Wellspring Capital Management is rebranding its radiology platform RAYUS Radiology as it strikes another deal. More M&A is imminent as a new CEO looks to crank up growth with a more holistic game plan.

In its latest bet, the company formerly known as Center for Diagnostic Imaging has snapped up InHealth Imaging, pushing its footprint in Washington state’s Puget Sound market up from 11 locations to 14. Through its recent deal for US MRI it is also now the official medical provider for US Ski and Snowboard, US Speedskating and US Bobsled and Skeleton.

CEO Kim Tzoumakas, who took the reins in March, told PE Hub that RAYUS – which was founded as one center in Minneapolis 40 years ago – has the ability to double in size over the next two years. She added that two more deals would be announced in the next month.

Sources familiar with RAYUS previously told PE Hub that the company, on the heels of recent and upcoming M&A, was projecting $115 million in EBITDA this year, up from $75 million in adjusted 2018 EBITDA. As the name change reflects, RAYUS – a word that meshes radiology with the company’s national presence – has evolved into much more than a single diagnostic imaging center.

“There are a lot of different desires by radiologists today … I feel really good about our ability to be that one-stop shop for radiologists to join,” Tzoumakas told me.

Check out my full report on PE Hub.

That’s it! Have a great week ahead. As always, hit me up with tips n’ gossip, feedback, The Drama or whatever at springle@buyoutsinsider.com.

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