After a three-year partnership, New Mountain Capital is selling Convey Health Solutions, Inc. to TPG Capital for an undisclosed amount. According to sources cited by Buyouts.com, New Mountain Capital has been looking for a buyer since last April. The sources also projected Convey Health should generate roughly $50 million EBITDA in 2019, up from $10 million in 2016.
The target company provides technology solutions exclusively for government-sponsored health insurance plans such as Medicare Advantage, Medicare Part D, and Employer Group Waiver Plans. The company’s management and other select stakeholders will remain invested in the company.
TPG will be getting a robust digital health platform with Convey Health, which acquired three companies acquisitions since it joined New Mountain Capital in 2016, according to our Deal Search Online database. In 2017, Convey acquired Gorman Health Group, a consulting and software solutions firm specializing in government health programs. It partners with more than 150 government-sponsored health programs, providing digital solutions to adhere to compliance and regulations, optimize revenues, and manage complex processes.
In November 2018, Convey Health acquired HealthScape Advisors and Pareto Intelligence, two sister companies. HealthScape is a management consulting firm and Pareto is an analytics and advisory company that delivers technology solutions to improve outcomes. The merger created a world-class healthcare payor technology and services platform serving more than 200 customers, including many of the leading commercial and U.S. government-sponsored health plans.