Private equity firm to buy medical software company for $1.1B
Private equity investor Francisco Partners announced it is purchasing AdvancedMD, a health IT company that specializes in servicing small provider practices, for $1.125 billion dollars.
Utah-based AdvancedMD develops cloud-hosted EHR, billing and telehealth software. It’s currently owned by Global Payments, a finance technology company that purchased it in 2018 for $700 million.
Some 13,000 practices across the U.S. use AdvancedMD as their primary EHR, as do 850 medical billing organizations. According to the company’s website, it employees 800 people.
In a statement, Francisco Partners said it is a previous investor in AdvancedMD and that the company will “continue to serve thousands of healthcare professionals by delivering a technology platform that supports practices through every stage of the patient care journey.”
It appears the plan is for the company to continue operating independently. Its current president, Amanda Sharp, said on LinkedIn she will now take the role of CEO, adding that she’s been with the company for more than 18 years and began working there as an intern. AdvancedMD was founded in 1999.
Global Payments will continue to work with AdvancedMD, processing payments for its medical billing division, the statement from Francisco Partners noted.
The transaction is expected to close by the end of the year, once approved by regulators.
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