Francisco Partners to Acquire Medical Software Firm AdvancedMD for $1.125 Bn

This acquisition will make AdvancedMD an independent entity with a strategic focus on growth and expansion, according to statements from the companies.

USA’s Private equity firm Francisco Partners has announced its acquisition of AdvancedMD, a provider of cloud-based healthcare management software, from Global Payments in a $1.125 billion deal expected to conclude this quarter. 

This acquisition will make AdvancedMD an independent entity with a strategic focus on growth and expansion, according to statements from the companies.

AdvancedMD, based in South Jordan, Utah, has operated for 25 years, offering a comprehensive software platform that integrates practice management, electronic health records (EHR), patient engagement tools, and billing services. 

The company’s cloud-native solutions cater to small and mid-sized ambulatory practices, with a customer base of 40,000 healthcare providers across 13,000 practices, along with 850 medical billing companies. Currently employing 800 individuals, the company is widely recognized for its role in supporting efficient practice management for independent healthcare providers.

Amanda Sharp, who will take on the role of CEO after serving as president, shared her optimism about the new partnership with Francisco Partners. 

“Our mission at AdvancedMD is to empower healthcare professionals to realise their full potential. This acquisition positions our business to meet the evolving needs of our clients, expand the product portfolio, and continue to invest in the business and our team members. We are thrilled to be working with Francisco Partners and have confidence that its healthcare technology experience and proven track record in nurturing and growing technology businesses will enable AdvancedMD’s loyal base of employees to continue delivering innovation.”

The move marks another significant transaction for Francisco Partners in the healthcare technology space. The private equity firm has a history of investing in over 450 technology companies, many within healthcare. 

Its current and previous investments include healthcare tech companies such as Availity, eSolutions, and QGenda, illustrating a continued focus on advancing tech solutions in the medical field.

Focus on Growth as a Standalone Business

With Francisco Partners’ acquisition, AdvancedMD is expected to benefit from dedicated investments aimed at expanding its technology and service offerings. 

Justin Chen, Partner at Francisco Partners, said, “We are excited to welcome AdvancedMD back to the FP portfolio and to partner with the team to continue building best-in-class healthcare software. AdvancedMD’s end-to-end platform delivers an integrated user experience for patients, physicians, staff, and billers, and is well-positioned to ensure its customers’ success.”

This transaction follows Global Payments’ initial acquisition of AdvancedMD in 2018 for $700 million from Marlin Equity Partners. Global Payments, which specializes in providing payment and software solutions across various industries, reported the terms of this new transaction to the US Securities and Exchange Commission, confirming the value of $1.125 billion.

Francisco Partners’ expertise in healthcare tech acquisitions is underscored by previous carve-outs, such as Merative (formerly IBM Watson Health), bswift from CVS Health, and Capsule Technologies from Qualcomm. 

With AdvancedMD rejoining its portfolio, Francisco Partners aims to enable growth and investment as the company navigates its next phase as a standalone entity.

In this acquisition, Francisco Partners was advised financially by Moelis & Company LLC, with Kirkland & Ellis LLP providing legal support. Global Payments engaged Bank of America as its exclusive financial advisor, while Wachtell, Lipton, Rosen & Katz served as its legal counsel.

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