Thoma Bravo snaps up Greenphire, KKR invests behind online equity

Thoma takes victory lap for Riverside's Greenphire, VSS invests behind growth in Oracle ecosystem, KRR injects $55m in eSSENTIAL Accessibility

Happy hump day, everybody!

In today’s headlines, Thoma Bravo unveiled its purchase of Greenphire, concluding a highly anticipated sale process launched earlier this year for the clinical trial payments technology business.

Financial terms weren’t disclosed, however sources told PE Hub in January that existing investor Riverside Co hoped to fetch some $1 billion in a potential transaction. Recurring revenue stands at about $100 million, sources said at that time.

One question was raised by sources in recent months. Would a financial sponsor manage to outbid a strategic party interested in the niche business? Operating at the intersection of pharma services, technology and payments, Greenphire was expected to command robust interest from various types of suitors — both growth-focused technology and healthcare IT private equity groups, as well as a wide pool of strategic buyers. Strategics might include fintech, financial services and healthcare IT companies, sources predicted.

Scarcity value seemed to add to its appeal: “People are so excited because no one else does it at scale,” one source said back in January. “It’s a nice business in a nice spot.”

Greenphire enables smarter budgeting of clinical trials, streamlines payments between sites, sponsors and CROs throughout the clinical trial, facilitates and automates payments to trial participants, as well as looks to improve patient participation by providing travel arrangements.

Read PE Hub’s brief on the deal and my previous coverage here.

Consolidation opportunity: VSS Capital Partners invested $20 million to $40 million in Centroid Systems, a managed cloud-services provider, according to people familiar with the matter.

Managed service providers typically have high levels of recurring revenue, well above-average growth and attractive margins, Trent Hickman, managing director at VSS, told PE Hub. Centroid is similar in that regard, but focuses on Oracle workloads with enterprise clients, the investor explained.

The inorganic growth strategy for Centroid includes adding clients within its existing Oracle expertise and penetrating other public cloud ecosystems, the investor said.

VSS has been actively deploying capital as of late. The structured capital firm partnered with Lincolnshire Management about a month ago to invest in Barrier Companies, as regulation fuels a growing need for fire and life safety within hospitals.

Niche: KKR is investing behind an interesting business concept I’ve never really considered. The firm injected $55 million in eSSENTIAL Accessibility, which states that it is the pioneering provider of Accessibility-as-a-Service.

In other words, eSSENTIAL through its tech and software helps to ensure online equality against the backdrop of more than one billion people worldwide who are living with a disability.

“As our dependency on digital connection increases, inclusive experiences have never been more critical – a need we are laser-focused on addressing,” the company’s CEO and Co-founder Mark Steele said on Wednesday.

KKR is investing through its Next Generation Technology Growth Fund II. Read PE Hub’s brief on the deal.

That’s it for me. Have a great week ahead, and as always, hit me up at springle@buyoutsinsider.com with any comments, tips or just to say hello!