PE Firm Warburg Pincus Acquires Behavioral Health EHR Provider Qualifacts

Nashville-based Qualifacts, an electronic health record provider for behavioral health and human service organizations, has changed hands.

New York-based Warburg Pincus, a global private equity firm focused on growth investing, purchased the company from Boston-based middle market PE firm Great Hill Partners last month.

Financial terms of the deal were not disclosed. 

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The deal is line with current trends: As the need for behavioral health services continues to rise, PE firms are taking special interest in the companies that deliver those services.

In fact, in Q3 2019, private equity firms and their portfolio companies accounted for about 76% of deals in the space, with the Qualifacts acquisition being one of those.

Qualifacts provides cloud-based health care solutions to behavioral health and human service organizations. Its scope includes clinical, financial and administrative offerings.

Qualifacts has one of the largest one of the industry’s largest SaaS behavioral health EHR platforms, which is called CareLogic Enterprise. The service is used by more than 60,000 behavioral health professionals in 34 states, according to a press release announcing the news. 

Warburg Pincus focuses on thesis-driven growth at scale, and such will be the case for Qualifacts.

The new ownership will help Qualifacts “accelerate product development and expand sales and marketing efforts,” the press release said. Additionally, it will help the company build relationships and spot acquisition opportunities.

Prior to Warburg Pincus’s acquisition, Qualifacts had been under Great Hill Partners’ ownership since July 2014.

Since then, Qualifacts “has dramatically grown its customer base and workforce,” a trend that is expected to continue under Warburg Pincus, company leaders said in a press release. 

“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 at Warburg Pincus said in a press release.

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