Private equity firm buys health data analytics company Arcadia
Nordic Capital, a global private equity investor, announced it has purchased a controlling stake in healthcare data analytics company Arcadia, with the deal expected to close later this year, pending regulatory approval.
As Nordic Capital moves in, former private equity co-owner Peloton Equity moves out. The exact financial terms of the deal were not disclosed, as none of the involved parties are publicly traded entities.
Arcadia is a data analytics firm that works on quality care and outcomes-based initiatives. Backed by machine learning and artificial intelligence, it helps healthcare organizations make use of their data and improve operational efficiency.
According to its website, the list of clients working with Arcadia includes payers such as Aetna, Cigna and Highmark; and health systems including Johns Hopkins University and the University of Chicago Medicine.
The company has also worked with the California government on a health equity initiative, using sociodemographic data on residents to improve public health.
Arcadia said the buyout by Nordic Capital will help it expand further and improve its technology. The private equity firm has a large portfolio of investments in technology, and with this acquisition, it’s placing a presumably large bet on healthcare AI.
“Nordic Capital’s investment is a powerful endorsement of the strength of Arcadia’s platform and confidence in our ability to deliver value by improving outcomes and reducing costs,” Michael Meucci, president and CEO of Arcadia, said in a press release. “This milestone marks a new phase of growth for Arcadia, grounded in the same mission, but with even stronger backing to scale smarter, invest faster, and accelerate innovation to meet the growing demand for data-driven intelligence in healthcare.”
The company added that the influx of funds from Nordic Capital will be used to accelerate its platform update, which enables organizations to “act on insights and improve both clinical and financial performance.” It also said the new owners will help bring in more data, something Arcadia needs to improve its machine-learning technology.
The transaction was publicly announced on July 1.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.