Warburg’s Qualifacts joins forces with Martis-backed Credible Behavioral Health; Clearlake’s TEAM Technologies adds Baril; Mill Rock-sponsored SPAC clinches acquisition

Warburg Pincus-backed Qualifacts unites with Martis Capital’s Credible Behavioral Health in healthcare tech merger and Clearlake's TEAM Technologies acquires Baril Corp.

Tuesday, August 25, 2020

Hey, hey everybody.

We’ve got another marriage of companies in healthcare tech today.

Warburg Pincus-backed Qualifacts has joined forces with Martis Capital’s Credible Behavioral Health in a push to become the first nationwide electronic health record platform specializing in behavioral health.

The merger comes about a year after Warburg prevailed in the auction for Qualifacts, providing an exit for Great Hill Partners. Warburg’s investment valued the Nashville-based company near $350 million, sources told PE Hub at the time.

Underlying macro drivers and a large market opportunity ahead presented an attractive case for a combination of two companies, Qualifacts CEO David Klements, who will run the combined company, told me.

Now at around 10 percent market share, Klements said there exists a huge growth opportunity ahead.

That said, Qualifacts is not interested in doing a roll-up of a dozen or so different companies. “This brings together two true SaaS platforms; two companies with good growth rates and good customer retention. This is a very intentional merger.”

Check out my full story on PE Hub.

SPAC alert: Mill Rock Capital has created Mill Rock Packaging Partners LLC to invest in growth-oriented companies with advanced service and product capabilities in the specialty packaging industry.
Simultaneously, Mill Rock Packaging Partners has acquired Trojan Lithograph Corp, a value-added provider of graphic paper packaging solutions, from Arbor Investments. Read more.

Top Scoops
Another Clearlake deal: TEAM Technologies, a portfolio company of Clearlake Capital, has acquired Baril Corp, a specialty manufacturer of infection prevention, wound care, clinical chemistry, patient monitoring, and medical and surgical consumable products. Clearlake’s investment in TEAM, a healthcare products company, dates to 2018.

Request for all PE Hub readers: We’re building a database of all PE-backed companies fighting covid-19. Have any of your portfolio companies retooled their daily operations to help flatten the curve? Drop karishma.v@peimedia.com or springle@buyoutsinsider.com a line with the company name, PE firm and how have they have altered things.

That’s it for me today. As always, send any feedback, comments or tips my way at springle@buyoutsinsider.com.