GTCR seeks to sell Cedar Gate Technologies in over US $1 billion deal

USA – Chicago-based private equity firm GTCR is exploring the sale of Cedar Gate Technologies, a healthcare analytics company, aiming for a valuation exceeding US $1 billion, including debt. ​

According to sources familiar with the matter, GTCR has engaged financial advisers to manage the sale process, with final bids expected in the coming month. The sale is anticipated to attract interest from both strategic buyers and other private equity firms. ​

Cedar Gate Technologies, headquartered in Greenwich, Connecticut, provides analytics and payment platforms utilized by services covering over 60 million insured Americans.

The company’s technology enables users to process vast amounts of data, offering platforms for patient analytics, population health, and payment information. ​

GTCR established Cedar Gate in 2014 through a partnership with David Snow, former CEO of Medco, with the goal of building a market-leading healthcare data and analytics company. GTCR committed up to US $200 million in equity capital to support this strategy. ​

Over the years, Cedar Gate has expanded its capabilities through strategic acquisitions. In 2018, the company acquired Global Healthcare Alliance, a provider of SaaS technology and services for managing bundled payment arrangements.

In 2020, Cedar Gate further bolstered its platform by acquiring Citra Health Solutions, Deerwalk Inc., and Enli Health Intelligence, enhancing its offerings in capitation management, data analytics, and population health management. ​

The potential sale of Cedar Gate comes amid a broader trend of private equity firms seeking exits during a slowdown in mergers and acquisitions activity.

Earlier this month, GTCR agreed to sell its 55% stake in Worldpay to Global Payments in a US $24.2 billion cash-and-stock deal, achieving a twofold return on its investment. ​

While the sale of Cedar Gate is not guaranteed, and GTCR may choose to retain or partially offload its stake, the move reflects the firm’s ongoing strategy to capitalize on its investments in the healthcare technology sector.

GTCR manages US $45 billion in assets across healthcare, financial services, and technology sectors. ​

Cedar Gate’s focus on value-based care and its comprehensive analytics platform position it as a significant player in the healthcare technology landscape, making it an attractive asset for potential buyers seeking to enhance their capabilities in this space. ​