Transactions: KKR’s $1.2B Behavioral Deal; IBH buys Uprise

KKR to acquire Therapy Brands

The global private equity giant KKR has agreed to acquire a majority interest in Therapy Brands, a practice management and EHR software platform for behavioral health and physical rehabilitation providers. The investment firm announced the news Wednesday.

While terms of the transaction were not disclosed, Bloomberg reported that KKR is putting $1.2 billion including debt into the deal.

KKR is acquiring the majority stake from existing shareholders, which include investment funds affiliated with Lightyear Capital LLC, Oak HC/FT and Greater Sum Ventures. Meanwhile, PSG — another existing investor, which is focused on middle-market software and technology-enabled services companies — will remain a minority shareholder in Therapy Brands. 

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Founded in 2013, Therapy Brands provides end-to-end software solutions for clinical, administrative and reimbursement workflows. It currently works with more than 28,000 practices nationwide. Psychologists, psychiatrists, counselors, social workers, applied behavior analysis ABA clinicians, addiction specialists and physical, speech and occupational therapists use the company’s services and solutions.

As part of the deal, KKR will help Therapy Brands “in accelerating the growth of the platform and finding additional ways of delivering enhanced value to its clinicians,” according to press release announcing the news.

KKR’s investment in Therapy Brands deepens the PE firm’s footprint in behavioral health, which also includes investments in companies such as Blue Sprig Pediatrics and BrightSpring Health Services.

IBH to buy Uprise

IBH, a tech-enabled population health company, has announced its acquisition of Uprise, a digital mental health platform.

Terms of the deal were not announced.

Based in Irvine, California, IBH provides innovative technology-based tools and solutions for employee assistance programs, behavioral health, SUD and wellness management. It works with employers, health plans and partners to provide its services and is a portfolio company of the tech-focused PE firm Periscope Equity.

Meanwhile, Uprise is a digital health platform and employee assistance program (EAP) provider that delivers mental health care via self-guided modules, live coaching and in-person therapy. The company also triages users to the appropriate services.

The deal will help bolster IBH’s data science capabilities and allow the company to help more people, according to a press release announcing the news.

“Uprise is a critical piece of our technology roadmap focusing on the Triple Aim of improving outcomes, patient experience, and cost effectiveness. It integrates remarkably well into our clinical assessment, data, care navigation, and risk mediation capabilities,” Dr. Ilya Gluhovsky, Chief Technology Officer at IBH, said in the press release. “This is just the beginning of our ambitious roadmap focusing on improved health and outcomes for our members through digital solutions.”

IBH’s acquisition news comes just a couple months after the company announced that it was acquiring HMC Healthworks, a chronic care management and data analytics company.

CloudMD closes acquisition of Aspiria

CloudMD, a digital health technology company, has closed its acquisition of Aspiria, which provides mental health and wellness solutions for employers and educational sectors.

CloudMD paid Aspiria shareholders $3 million for the purchase, with $1.2 million of that in cash, $1.05 million in common shares and the rest in the form of a performance-based earnout, according to a press release. 

Both companies are headquartered in Canada. 

As a result of the deal, CloudMD now has the fourth largest EAP platform in Canada, with 7,500 psychologists and psychotherapists covering more than 3 million lives across North America. 

“We are very excited to close the acquisition of Aspiria and welcome the team to our EHS Division,” Karen Adams, Chief Health Innovation Officer and Global Head of Enterprise Health Solutions at CloudMD, said in a press release announcing the news. “The addition of Aspiria enables us to support employers with the launch of our integrated mental health support solution, providing individuals access to important assessment and triage to navigate their mental health issues with the right treatment plan. Rising mental health issues in the workplace requires an expansion of what employers currently understand as EAP which includes more assessments, comprehensive treatment plans and progressive measurement empowering people to get the help they need and in turn reduce casual absenteeism and disability within organizations.”

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