International investment firm KKR has agreed to purchase a majority stake in Birmingham’s Therapy Brands for $1.2 billion.
The Birmingham firm, founded in 2013, creates software for electronic medical records and practice management for health care providers in fields, including mental health, substance abuse and physical therapy, all designed to comply with HIPAA regulations. The firm’s software is in use in more than 28,000 practices in the U.S., a mix of large and small groups.
KKR did not disclosed financial terms; the $1.2 billion estimate is from Bloomberg, shortly after the deal was announced last week.
KKR will assume the shares now held by investors Lightyear Capital, Oak HC/FT and Greater Sum Ventures. Current investor PSG will maintain its share in Therapy Brands.
“Provider and patient friendly technology-enabled solutions are more important than ever as the demand for mental and behavioral health services continues to rapidly increase,” said Kimberly O’Loughlin, CEO of Therapy Brands. “We are excited to welcome KKR as our new investor, which brings a deep understanding of the healthcare sector and extensive experience in scaling technology-enabled platforms. This support will help us accelerate our mission of making it easier for providers to navigate an increasingly complex administrative landscape so they can spend more time and focus on delivering improved outcomes for their clients.”
“We are delighted to be backing Therapy Brands at a time when there is increasing recognition and social awareness about the importance of mental health,” said Max Lin, a KKR Partner who co-leads the health care industry team for KKR’s Americas Private Equity business. “Therapy Brands has developed an impressive portfolio of best-in-class software tools and mission-critical solutions to help mental health providers modernize their practices. We look forward to working with the team in accelerating the growth of the platform and finding additional ways of delivering enhanced value to its clinicians.”
