TransUnion has signed an agreement to divest its healthcare data and analytics business, TransUnion Healthcare, to nThrive for a cash consideration of $1.7bn.
nThrive is a healthcare revenue cycle management software-as-a-service platform, which is backed by Clearlake Capital Group (along with certain affiliates, Clearlake).
TransUnion will use the sale proceeds to repay its debt as well as finance its pending acquisitions of Neustar and Sontiq, which are expected to fast-track the company’s long-term revenue growth.
TransUnion president and CEO Chris Cartwright said: “With the divestiture of TransUnion Healthcare, TransUnion will bring greater focus to our position as a global information and insights company providing credit, marketing and fraud mitigation solutions to help businesses and consumers transact with greater certainty.
“The transaction will also allow TransUnion Healthcare to benefit from ownership whose priorities and expertise are solely focused on healthcare revenue cycle management.”
Completion of the deal is subject to customary closing conditions and regulatory approvals and is expected to take place by the fourth quarter of this year.
Upon completion of the deal, Clearlake plans to integrate TransUnion Healthcare with its portfolio company nThrive and bolster its portfolio with healthcare data and analytics capabilities.
Clearlake co-founder and managing partner Behdad Eghbali and Clearlake principal Paul Huber said: “There is a long and rich history between these two organizations, and we could not be more excited about the opportunity to create an end-to-end leader in the RCM software and technology category.
“We have been focused on a buy-and-build thesis to scale our SaaS platform investment in nThrive and are eager to leverage Clearlake’s O.P.S. framework and resources to support management on this technology platform as they continue to drive meaningful value for clients and execute on accelerated growth plans.”
For this deal, Centerview Partners served as financial advisor and Latham & Watkins served as legal counsel to TransUnion.