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Leonard Green & Partners Joins TPG Capital for New Equity Investment in WellSky

July 22, 2020, 08:00 AM
Filed Under: Healthcare

WellSky, a global health and community care technology company, and TPG Capital, the private equity platform of alternative asset firm TPG, announced they have entered into a definitive agreement to add Leonard Green & Partners, L.P. (LGP), a private equity firm, as a new capital partner. As part of the transaction, TPG Capital will make a new equity investment in WellSky. The partnership creates a new capital structure for the company and will accelerate WellSky’s long-term mission of realizing care’s potential across the continuum.

Together with TPG Capital and LGP, WellSky will continue to strengthen its position as the leading technology, services, and analytics provider for post-acute and community care. This additional capital enables WellSky to expand the depth and breadth of its solutions, strengthen its relationships with its 15,000 payer and provider clients, and further invest in its market-leading capabilities and position.

“TPG and LGP are strongly aligned with our vision of delivering the best and most comprehensive suite of solutions to advance care,” said Bill Miller, CEO of WellSky. “WellSky has built the most robust portfolio in post-acute and community care. We’re excited to drive ongoing innovation and deliver new technology and services to help WellSky clients grow their businesses and improve outcomes for their communities.”

Care providers are facing growing pressures — including the COVID-19 pandemic, the aging population, the shift to value-based care, and a rapidly changing regulatory environment. With all of these dynamics in play, providers and payers alike recognize that coordinating care across different settings is vital for helping people maintain and improve their overall quality of life as they age. With the largest national network of post-acute and community care providers, WellSky plays a pivotal role in shaping the future of care and bending the cost curve, while also helping to ensure individuals can receive the care they need in their homes.

“Throughout our partnership, WellSky has meaningfully expanded and enhanced its capabilities to serve providers in every setting of care. The company is well-positioned for strong, continued growth as more providers seek a reliable and innovative technology partner that can help them navigate increasing demand, evolving payment models, and the ongoing shift toward lower-acuity and community-based care,” said Nehal Raj and Jeff Rhodes, Partners at TPG Capital. “It’s been a privilege to be part of WellSky’s transformational journey over the past three years, and we look forward to working with the WellSky team and our new partners to help enable the company in its continued pursuit towards delivering intelligent care management at scale.”

“WellSky and TPG have built an incredible track record of success, and we’re excited to join them as we transform care across the continuum,” said John Danhakl, Managing Partner, and Pete Zippelius, Partner of LGP. “WellSky has a history of enabling providers to deliver quality care, improve operational efficiency, reduce cost, and meet the ever-changing challenges of their patients and clients. Our partnership positions the company to achieve continued growth and technological innovation that will shape the future of care.”

TPG Capital invested in WellSky in December of 2016, and WellSky has since taken meaningful steps to establish itself as a leading, high-growth technology and analytics provider to the post-acute and community care markets, including expanding and integrating its solutions portfolio, increasing its client base, and investing in strategic growth initiatives.

Goldman Sachs & Co. L.L.C. and William Blair & Company, L.L.C. served as financial advisors to WellSky. Ropes & Gray LLP served as the legal advisor to WellSky and TPG Capital, and Latham & Watkins LLP served as the legal advisor to LGP. Terms of the transaction were not disclosed. The transaction is subject to customary regulatory approvals and is expected to close in the third quarter of 2020.

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