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Healthcare Wire
February 20, 2020
It’s Thursday, everybody.

Lots of news to get to today, but first, a note to readers about some ongoing changes. As you likely have seen, we've taken steps to consolidate our newsletter commentary into a new premium version of the PE Hub Wire. Starting next week, that change will extend to this product as well. Registered users will begin receiving a streamlined version of this newsletter; our insight on M&A in the healthcare, tech and other industries will shift to the subscriber-only premium Wire. Thank you for your readership and if you haven't already, we hope you'll consider subscribing to PE Hub!

Now, to today’s news.

This just in: Great Hill Partners is awaiting final bids for Quantum Health, sources familiar with the matter told PE Hub. While the self-insured employer benefits arena has surfaced as an increasingly hot area of investment, I’m told Quantum in particular saw interest accelerate amid the strong performance of its publicly traded peer, Accolade – which is trading at a low teens revenue multiple.

Read my full report for financial detail and more.

Great Hill, if you haven’t noticed, has made quite a mark in the employer healthcare benefits services universe. Including Quantum, the Boston growth equity firm has now invested in five businesses in the space so far. That includes RxBenefits, which earlier this month brought on Advent International as an additional investor in the business, I wrote. Read more.

Pharma commercialization: Another area of healthcare that has remained busy is the pharma services industry. This week I learned that GHO Capital-backed Envision Pharma Group is getting into the business of pharma commercialization through the acquisition of Two Labs, concluding a Baird-run sale process. Read my story for valuation info and more.

The pharma commercialization vertical in which Two Labs plays is a large and very fragmented space - and there are lots of ways to play the market, I’m told. You can be a traditional agency, a consultancy firm, or, like Envision Pharma Group, play on the communication services side of things.

Whatever your approach, big funds Like London’s GHO are planting a flag and buying stuff around it. Other players like CD&R, which earlier this year bought medical affairs firm Huntsworth for £575 million ($755 million), are doing the same thing in their own way.

It’s also worth noting that the continued strength of the pharma services arena is not due to a “covid bump,” sources tell me. Rather, outsourced pharma services are playing on long-term themes driven by the needs of specialty pharma and cell and gene therapy.
Top Scoops
In one of the week’s biggest shocks to the healthcare market, Cano Health, a primary care provider serving seniors in the Medicare Advantage market, has agreed to a $4.4 billion merger with Jaws Acquisition Corp., a SPAC sponsored by real estate investor Barry Sternlicht.

Check out my two cents on the deal in today's PE Hub wire and read my recent coverage on the business, which fielded final round bids from sponsors last month.

In other notable activity, Bain Capital Tech Opportunties simultaneously agreed to buy and merge HST Pathways and Casetabs, two cloud-based software providers specializing in the ambulatory surgery center market, I wrote. Check out my full report.

That's it for me today. As always, write to me with any feedback, tips or just to say hello!

Top Stories
ExactCare, Nautic-backed pharmacy company, seeks buyer
Nautic in March 2016 recapitalized ExactCare, which specializes in serving complex patients in their homes. More...
Sun Capital makes push in growth-oriented healthcare with West Dermatology
The Boca Raton, Florida, firm eyes potential opportunities for investment in eyecare, behavioral health and across the orthopedic supply chain. More...
Cano Health, InTandem-backed primary care group, readies for Moelis-run auction
The Florida provider of at-risk primary care for seniors has grown from one to 35 clinics in three years. More...
Hellman & Friedman’s PPD shows PE growth in action
PPD's value has grown more than 288 percent since H&F and Carlyle backed the company in December 2011, with its IPO assigning it an initial enterprise value of ~$14bn. More...
CCMP senior healthcare member Ryan Anderson departs
Current healthcare efforts are being led by members that include Greg Brenneman, Richard Zannino, Kevin O’Brien and Shane McHugh. More...
H.I.G. acquires Vernacare
H.I.G. Capital has acquired U.K.-based Vernacare, a maker of infection control systems. More...
VSS completes investment in Ascent Behavioral Health
Ascent will use the investment to support the expansion of the company’s existing programs and potential acquisitions of complementary programs. More...
PE-backed Symplr buys TPSC from Main Capital
Symplr, which is backed by Clearlake Capital Group LP and SkyKnight Capital, has acquired The Patient Safety Company from Main Capital Partners. More...
Sun Capital buys West Dermatology
Sun Capital Partners has acquired West Dermatology, a clinical, cosmetic and research dermatology platform with clinic locations throughout Arizona, California and Nevada. More...
PE-backed PCI Pharma Services buys Bellwyck
PCI Pharma Services, which is backed by Partners Group, Thomas H. Lee Partners and Frazier Healthcare, has acquired Bellwyck Pharma Services. More...
Incline invests in ASP
Incline Equity Partners has made an investment in Atlanta-based ASP Global, a provider of healthcare supplies. More...
Gryphon Investors agrees to invest in packaging materials company Pacur
Pacur's CEO Barry Johnson and the management team will continue running the business, while the Johnson family will remain significant owners.  More...
Firms & Funds
Envest Capital collects over $18.2 mn for second fund
Envest Capital Partners has raised over $18.2 million for its second fund, according to an SEC filing. More...
People Moves
DWHP promotes Mitchnick to VP
Toronto and Park City, Utah-based DW Healthcare Partners, a healthcare-focused private equity firm, has promoted Michael Mitchnick to vice president. More...
PE-backed Griswold appoints Slupecki as CEO
Griswold Home Care, which is backed by Pouschine Cook, has named Michael Slupecki as CEO. More...
PE-backed Collagen Matrix appoints McCarthy as CEO
Collagen Matrix, which is backed by Linden Capital Partners, has named Shawn McCarthy as CEO and a member of its board of directors. More...
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