Private equity firm Francisco Partners plans to buy medical software company AdvancedMD from Global Payments for $1.125 billion dollars, the companies announced Wednesday.
Global Payments, which sells payment technology and software solutions, bought the health tech company from investment firm Marlin Equity Partners in 2018 in a transaction valued at $700 million.
The company reported in a filing with the U.S. Securities and Exchange Commission that the transaction is valued at $1.125 billion and is expected to close this quarter.
Francisco Partners executives said the acquisition will position AdvancedMD as a standalone business to accelerate investment and expansion.
AdvancedMD, a 25-year-old company headquartered in South Jordan, Utah, provides a cloud native medical office software platform that unifies practice management, electronic health record, patient engagement and payment software solutions. The company provides its cloud-based software-as-a-service solutions to small- to medium-sized ambulatory physician practices.
The company employs 800 people and serves 40,000 practitioners across 13,000 practices along with 850 medical billing companies, according to its website.
AdvancedMD President Amanda Sharp will take on the title of CEO. According to a LinkedIn post, Sharp started with the company as an intern 18 years ago.
“Our mission at AdvancedMD is to empower healthcare professionals to realize their full potential," Sharp said in a statement. "This acquisition positions our business to meet the evolving needs of our clients, expand the product portfolio and continue to invest in the business and our team members. We are thrilled to be working with Francisco Partners and have confidence that its healthcare technology experience and proven track record in nurturing and growing technology businesses will enable AdvancedMD’s loyal base of employees to continue delivering innovation.”
Francisco Partners has invested in more than 450 technology companies, including many investments in the healthcare tech market. Its current and past investments in the sector include Availity, eSolutions, GoodRx, Landmark, QGenda, Trellis and Zocdoc.
The PE firm also has executed divisional carve-outs such as bswift from CVS Health, Merative (formerly IBM Watson Health) from IBM and Capsule Technologies from Qualcomm.
“We are excited to welcome AdvancedMD back to the FP portfolio and to partner with the team to continue building best-in-class healthcare software. AdvancedMD’s end-to-end platform delivers an integrated user experience for patients, physicians, staff and billers, and is well-positioned to ensure its customers’ success," Justin Chen, partner at Francisco Partners, said in a statement.
Moelis & Company LLC is acting as financial adviser and Kirkland & Ellis LLP is serving as legal adviser to Francisco Partners. Bank of America is serving as exclusive financial adviser and Wachtell, Lipton, Rosen & Katz is serving as legal adviser to Global Payments.