This morning a private equity firm by the name of Warburg Pincus merged DocuTAP, maker of a tablet-based EMR and practice management software, with Practice Velocity, an urgent care EHR company. The firm plans on uniting the two companies under the name Experity.
WHAT’S THE IMPACT
After the merger, the company promises existing clients that it will continue to support all platforms and service. Additionally, those clients will have access to new services including patient engagement tools, teleradiology, remote patient registration and consulting.
“DocuTAP and Practice Velocity’s current customers remain our number one priority,” Matt Blosl, CRO of Experity and formerly the CRO of DocuTAP, said in a statement. “Both companies have always focused on providing amazing solutions and customer service — this will not change. In addition, the scale and resources of the combined company will empower us to speed up our pipeline of software production and significantly amplify our impact on the rapidly expanding urgent care industry.”
In terms of the impact on staffing, Practice Velocity’s CEO David Stern will take over as the CEO of Experity. DocuTAP’s CEO Eric McDonald will be setting down and joining as a board member. According to a statement, the existing staffs will remain and Experity will keep its offices in South Dakota, St. Louis, Georgia, Illinois and Arizona.
WHAT'S THE TREND
With more than $8 billion being poured into the digital health space in 2018, many eyes are set on exit strategies. Companies that have gone the IPO avenue are scarce. However, there are a number of digital health M&As.
In fact, in 2018 alone MobiHealthNews reported on 56 digital health mergers and acquisitions. Since 2013, when the publication started tracking M&As, the number of these deals has increased every year except for one.
Further, this isn’t the first time DocuTAP has been involved in the M&A space. In 2017 the company acquired Clockwise.MD, a mobile appointment-booking software. The EHR space in particular has seen quite a lot of M&As. Just yesterday Harris Computer System’s healthcare group acquired Uniphy Health, a startup focused on clinical communications and physician hardware tool, with the goal of improving the former’s EHR workflow and user engagement aspect.
ON THE RECORD
“These two distinguished companies have driven significant expansion in the on-demand healthcare space having been perennially recognized by Black Book and KLAS for excellence in the field,” Andrew Park, managing director of Warburg Pincus, said in a statement.