Qualifacts Announces Investment from Warburg Pincus
Investment Will Accelerate Product Development and Innovation for the Behavioral Health Industry
Qualifacts, one of the largest Software-as-a-Service (SaaS) electronic health record providers (EHR) for behavioral health and human service organizations, announced that Warburg Pincus, a leading global private equity firm focused on growth investing, has acquired the company from the previous investor, Great Hill Partners. Financial terms of the transaction were not disclosed.
The investment will allow Qualifacts to accelerate product development and expand sales and marketing efforts. The partnership will also help the company identify strategic relationships and acquisition opportunities. Qualifacts is a leader in cloud-based healthcare technology, providing integrated clinical, financial and administrative software solutions to the behavioral health and human service market.
“Qualifacts offers a unique platform with a focus on providing efficient and easy-to-use tools for behavioral health and human service organizations. Backed by their experience in healthcare technology and extensive network of resources, we are confident that Warburg Pincus will further accelerate our market leadership by delivering increased value for the customers we serve,” said David Klements, President & CEO, Qualifacts. “We also want to sincerely thank Great Hill Partners for their partnership and support, which have been key to our success over the past five years.”
Warburg Pincus is a leading investor in healthcare technology, focused on thesis-driven growth at scale. Since its inception, the firm has invested in excess of $10 billion and $17 billion into healthcare and technology companies, respectively.
“The company’s product suite, combined with a strong presence in the healthy and growing behavioral health and human service end-market, creates a tremendous opportunity for both organic and inorganic growth,” said Andrew Park, Managing Director, Warburg Pincus. “We are excited to partner with David and the Qualifacts management team, who bring strong domain experience in behavioral healthcare and have built a leadership position in the cloud-based healthcare technology space,” added Amr Kronfol, Managing Director, Warburg Pincus.
Under Great Hill Partners’ ownership since July 2014, Qualifacts has dramatically grown its customer base and workforce, cementing its position as one of the largest SaaS behavioral health EHR platforms and behavioral health EHR businesses. The company’s SaaS EHR platform, CareLogic Enterprise, is used by more than 60,000 behavioral health professionals in 34 states and last year supported the delivery of more than 50 million services to over one million consumers.
“It has been an exciting journey for us to support the management team at Qualifacts through our investment. The team has shown great leadership in building a best-in-class SaaS platform for behavioral health organizations,” said Mark Taber, Managing Partner, Great Hill Partners. “This investment by Warburg Pincus will further accelerate the growth of the business, and we wish the team continued success.”
Aeris Partners served as the exclusive financial advisor to Qualifacts and Great Hill Partners. TripleTree served as the financial advisor to Warburg Pincus. Goodwin Procter LLP served as legal advisor to Qualifacts and Great Hill Partners and Orrick, Herrington & Sutcliffe LLP served as legal advisors to Warburg Pincus.