Buyout firm TPG Capital LP [TPG.UL] has agreed to acquire Mediware Information Systems Inc [MEDWI.UL], a healthcare technology company, from another private equity firm, Thoma Bravo LLC.
Financial terms of the deal were not disclosed.
The deal underscores TPG's confidence in the increasing reliance of healthcare providers on outpatient facilities and other alternatives to traditional hospital care settings as healthcare providers scramble to hold down costs.
"Our experience in the healthcare industry, across leading healthcare providers, payers and product companies, gives us a unique perspective into how technology can further transform healthcare,” said Jeffrey Rhodes, partner at TPG, in a statement.
The deal also underscores the appetite of private equity firms for acquisitions of healthcare services companies that are not exposed to the Affordable Care Act, whose prospects appear increasingly uncertain under the incoming U.S. Presidential administration.
Mediware sells software programs that help with administration and costs savings to healthcare providers including blood banks, behavioral health providers, home healthcare providers and more.
Thoma Bravo took Mediware private in 2012 for $195 million and built it out with acquisitions including Bowman Systems, which focuses on homeless management.
Mediware would benefit from additional acquisitions, potentially large ones, in areas including non-acute care and human services, said Rhodes.
TPG has previously invested in other healthcare technology companies including Evolent Health and IMS Health.
Earlier this year, IMS agreed to merge with contract researcher Quintiles Transnational Holdings Inc in a nearly $10 billion deal, creating a new company called Quintiles IMS Holdings, Inc (Q.N).
(Reporting by Carl O'Donnell in New York; Editing by Bernard Orr)