Francisco Partners Buying Health IT Provider QuadraMed
Francisco Partners, a technology-focused private equity firm, has entered into a definitive merger agreement to purchase QuadraMed Corporation, a provider of healthcare information technologies and services, according to QuadraMed.
Under the agreement, Francisco Partners agreed to acquire all of the outstanding shares of QuadraMed's common stock for $8.50 per share in cash and all of the outstanding shares of QuadraMed's Series A Cumulative Mandatory Convertible Preferred Stock for $13.70 per share in cash. The all-cash transaction is valued at about $126 million, according to QuadraMed.
"After a thorough and careful review of the strategic alternatives available to us, QuadraMed's special committee and Board of Directors have concluded that this transaction represents the best option to maximize value for our shareholders," said James E. Peebles, chairman of QuadraMed's Board of Directors.
"Francisco Partners brings to QuadraMed extensive resources, expertise, and a proven track record of helping healthcare technology companies sharpen their strategy and operational execution. Operating as a private company will also allow us to place more emphasis on generating long-term value for our clients with less distraction on short-term results for the public markets," said Duncan James, QuadraMed's president and chief executive officer.
Francisco Partners has approximately $5 billion of committed capital and offices in San Francisco and London, and is one of the world's largest technology-focused private equity funds. The principals of Francisco Partners have invested in excess of $3 billion of equity capital in more than 50 technology companies, according to QuadraMed's announcement.
"We are excited to become part of QuadraMed's future success with this acquisition," said Ezra Perlman, partner at Francisco Partners. "We understand the critical role technology plays to drive quality care and to make healthcare more efficient. QuadraMed has a quality set of products, an extensive customer base, and a solid market position."
QuadraMed is Francisco Partners' fifth separate investment in the healthcare IT industry, including current portfolio companies API Healthcare, AdvancedMD Software, and Healthland.
Les Masterson is an editor for HealthLeaders Media.
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