Clearlake Capital Backed nThrive to Acquire TransUnion's Healthcare Business
Creates prominent end-to-end healthcare RCM software and technology platform with patient financial clearance and eligibility capabilities that reduce complexity and drive profitability to allow providers and payers to provide enhanced care
nThrive, Inc. (“nThrive”), a leading healthcare revenue cycle management (“RCM”) software-as-a-service (“SaaS”) platform backed by Clearlake Capital Group, L.P. (together with certain affiliates, “Clearlake”), today announced it has signed a definitive agreement to acquire TransUnion Healthcare, Inc., the healthcare data and analytics business of TransUnion (NYSE: TRU). With its RCM front and back-end solution suite, TransUnion Healthcare helps hospitals and health systems increase revenue, reduce cost, and ensure regulatory compliance. TransUnion Healthcare helps over 1,850 hospitals and 650,000 physicians reduce complexity and increase their profitability.
nThrive and TransUnion Healthcare are each committed to helping clients achieve stronger financial outcomes. The combined entity will offer healthcare organizations and payers a complete end-to-end RCM technology and software solution, giving customers increased confidence and predictability in payment optimization. This acquisition furthers nThrive’s commitment to better serve the healthcare community by increasing revenue assurance and improving revenue staff efficiency while lessening administrative burden so that providers can focus on higher quality care and outcomes for patients.
“We are thrilled to welcome TransUnion Healthcare’s colleagues and clients to the nThrive family,” said Hemant Goel, CEO of nThrive. “We have enjoyed a long-standing commercial partnership with TransUnion Healthcare and both organizations are rooted in complementary missions and cultures. nThrive is focused on designing healthcare technology that delivers tangible outcomes for our clients. As we continue on our mission to help eliminate leakage and waste from healthcare revenue cycles, we look forward to bringing TransUnion Healthcare into the fold to serve our clients as a unified and integrated organization.”
“There is a long and rich history between these two organizations, and we could not be more excited about the opportunity to create an end-to-end leader in the RCM software and technology category,” said Behdad Eghbali, Co-Founder and Managing Partner at Clearlake and Paul Huber, Principal at Clearlake. “We have been focused on a buy-and-build thesis to scale our SaaS platform investment in nThrive and are eager to leverage Clearlake’s O.P.S.® framework and resources to support management on this technology platform as they continue to drive meaningful value for clients and execute on accelerated growth plans.”
“We are proud to have built TransUnion Healthcare into a formidable platform in the healthcare space,” said Chris Cartwright, President and CEO of TransUnion. “nThrive’s leadership in healthcare revenue cycle management makes it an ideal home for the TransUnion Healthcare business, and we look forward to a seamless transition for TransUnion Healthcare’s customers and employees.”
Centerview Partners LLC served as financial advisor and Latham & Watkins LLP served as legal counsel to TransUnion.
Debt financing supporting the transaction was provided by J.P. Morgan, Deutsche Bank, Golub, Barclays, BMO Capital Markets, Credit Suisse, and Jefferies. Sidley Austin LLP served as legal counsel to Clearlake and nThrive.
nThrive provides healthcare revenue cycle management SaaS solutions, offering patient access, charge integrity, claims management, contract management, machine learning & robotic process automation, data & analytics, and education software solutions to more than 900 hospitals and health systems in North America, including 37 of the 40 largest healthcare providers in the U.S.
nThrive’s end-to-end software platform helps healthcare organizations increase revenue, reduce costs, expand cash collections, and ensure regulatory compliance across the entire revenue cycle continuum. For more information, please visit https://www.nthrive.com/.
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company that makes trust possible in the modern economy. We do this by providing a comprehensive picture of each person so they can be reliably and safely represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good.®
A leading presence in more than 30 countries across five continents, TransUnion provides solutions that help create economic opportunity, great experiences, and personal empowerment for hundreds of millions of people.
About TransUnion Healthcare
TransUnion Healthcare, Inc., a wholly owned subsidiary of TransUnion, makes trust possible by creating simplicity and transparency throughout the healthcare ecosystem to improve health and financial outcomes. TransUnion Healthcare is expected to generate approximately $190 million of revenue in 2021 at a mid-40 percent Adjusted EBITDA margin. TransUnion Healthcare helps over 1,850 hospitals and 650,000 physicians collectively recover more than $1.2 billion annually in revenue. TransUnion Healthcare’s Revenue Protection® solutions leverage comprehensive data, accurate insights and industry expertise to engage patients early, ensure earned revenue gets paid and optimize payment strategies.
Clearlake Capital Group, L.P. is an investment firm founded in 2006 operating integrated businesses across private equity, credit, and other related strategies. With a sector-focused approach, the firm seeks to partner with management teams by providing patient, long-term capital to businesses that can benefit from Clearlake’s operational improvement approach, O.P.S.® The firm’s core target sectors are technology, industrials, and consumer. Clearlake currently has approximately $50 billion of assets under management and its senior investment principals have led or co-led over 300 investments. The firm has offices in Santa Monica and Dallas. More information is available at www.clearlake.com and on Twitter @ClearlakeCap.
TransUnion Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of TransUnion’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements. Any statements made in this press release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements include information concerning possible or assumed future results of operations, including our guidance and descriptions of our business plans and strategies. These statements often include words such as “anticipate,” “expect,” “guidance,” “suggest,” “plan,” “believe,” “intend,” “estimate,” “target,” “project,” “should,” “could,” “would,” “may,” “will,” “forecast,” “outlook,” “potential,” “continues,” “seeks,” “predicts,” or the negative of these words and other similar expressions.
Factors that could cause TransUnion’s actual results to differ materially from those described in the forward-looking statements include: the effects of the COVID-19 pandemic and the timing of the recovery from the COVID-19 pandemic; the possibility that the expected benefits of the proposed TransUnion Healthcare divestiture will not be realized, or will not be realized within the expected time period; failure to obtain governmental approvals of the proposed divestiture of TransUnion Healthcare in the expected time period, or at all; the impact of the proposed divestiture of TransUnion Healthcare on TransUnion’s businesses and the risk that consummating the proposed divestiture of TransUnion Healthcare may be more difficult, time-consuming or costly than expected; the possibility that the proposed divestiture of TransUnion Healthcare does not close, including failure to satisfy the closing conditions; risks related to the distraction of management from ongoing business operations and other opportunities due to the proposed divestiture of TransUnion Healthcare; business disruption related to the proposed divestiture of TransUnion Healthcare; the effects of pending and future legislation and regulatory actions and reforms; macroeconomic and industry trends and adverse developments in the debt, consumer credit and financial services markets and other macroeconomic factors beyond TransUnion’s control; risks related to TransUnion’s indebtedness, including TransUnion’s ability to make timely payments of principal and interest and TransUnion’s ability to satisfy covenants in the agreements governing its indebtedness; and other one-time events and other factors that can be found in TransUnion’s Annual Report on Form 10-K for the year ended December 31, 2020, and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are filed with the Securities and Exchange Commission and are available on TransUnion’s website (www.transunion.com/tru) and on the Securities and Exchange Commission’s website (www.sec.gov). Many of these factors are beyond our control. The forward-looking statements contained in this press release speak only as of the date of this press release. We undertake no obligation to publicly release the result of any revisions to these forward-looking statements to reflect the impact of events or circumstances that may arise after the date of this press release.