GTCR has announced that it has signed a definitive agreement to acquire Cloudbreak Health, LLC in a corporate carve-out transaction from UpHealth, Inc.
Cloudbreak Health originally combined with UpHealth, Inc., formerly known as GigCapital2, Inc., and UpHealth Holdings, Inc. in November 2020. The combined UpHealth entity had a combined pro forma enterprise value of $1.35 billion and traded on the New York Stock Exchange under the ticker “UPH”.
Under the terms of the agreement, the purchase price is $180 million, and the transaction is expected to close in the first quarter of 2024 following the receipt of customary regulatory and stockholder approvals and closing conditions.
Cloudbreak Health is a language access and telehealth company providing interpretation services. The company was founded in 2003 to provide video remote interpreting services and over-the-phone interpreting to medical facilities around the United States.
Founded in 1980, GTCR is a private equity firm focused on investing in growth companies in the business and consumer services, financial services and technology, healthcare and technology and media and telecommunications industries. GTCR has invested more than $25 billion in more than 270 companies, and the firm currently manages more than $35 billion in equity capital.
According to data captured in the LevinPro HC database, this acquisition represents the 250th eHealth transaction of 2023. Private equity firms and/or their portfolio companies represent 38% of the buyers in the eHealth sector in 2023.
Monroe and Barings are providing debt financing support for the transaction. Kirkland & Ellis LLP provided legal counsel.
