Francisco Partners and McKesson Corp. (NYSE: MCK) are swapping companies again. Back in October 2013, the technology-focused private equity firm acquired McKesson Automation, which offers integrated pharmacy automation products for hospitals and health systems, thus streamlining the delivery of medications. Financial terms were not disclosed.
In January 2017, McKesson acquired CoverMyMeds, LLC from Francisco Partners for $1.1 billion, and another $300 million if the company met future financial targets. To make things even cozier, McKesson and CoverMyMeds have partnered together to work with pharmacies since 2010.
CoverMyMeds provides electronic prior authorization (ePA) solutions that automate the medication prior authorization process for more than 500 EHR (electronic health record) systems, 47,000 pharmacies and 700,000 providers.
Francisco made a growth investment in CoverMyMeds in November 2014, when the company had just 360 EHR systems, 45,000 pharmacy locations, and payers that represent 72% of U.S. prescription volume. No word on how much Francisco poured into this portfolio company, but it looks as if the investment paid off.
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