Leading video-focused language interpretation service
provider to become independent company
CHICAGO, Nov. 16,
2023 /PRNewswire/ -- GTCR, a leading private equity
firm, announced today that it has signed a definitive agreement to
acquire Cloudbreak Health, LLC ("Cloudbreak" or "the Company"), a
leading provider of tech-enabled, healthcare-focused language
interpretation services, in a corporate carve-out transaction from
UpHealth, Inc. ("UpHealth", NYSE: 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.
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Headquartered in Columbus, OH,
Cloudbreak is a leading video-focused language interpretation
service provider that helps patients with limited English
proficiency communicate with caregivers in healthcare settings. The
Company's core offering is Martti™ (My Accessible Real-Time
Trusted Interpreter), a HIPAA-compliant Video Remote Interpretation
("VRI") solution that connects patients with interpreters in over
250 languages across its network of more than 1,000 interpreters.
Cloudbreak serves clinicians and patients across all types of
healthcare settings, including hospitals, urgent care centers,
standalone clinics and medical practices and helps improve health
equity across an underserved U.S. patient population.
The transaction will strengthen Cloudbreak's leading position as
a high-quality provider of interpretive telehealth services in a
growing end-market. GTCR expects to make substantial investments in
the business to enhance the Company's go-to-market strategy, drive
operational efficiencies and invest in its tech-enabled offerings
to accelerate organic growth. GTCR has substantial experience in
the healthcare technology segment in which Cloudbreak operates. The
firm also has a long history of pursuing and completing complex
corporate carve-outs.
"We see tremendous opportunity to leverage our firm's long
history in the health and technology sectors to advance Cloudbreak,
investing in its technology and continuing to enhance its product
offering to meet evolving clinician and patient needs," said
Mark Anderson, Managing Director and
Head of Technology, Media & Telecommunications at GTCR.
"Cloudbreak has established itself as a leader in the healthcare
interpretation end-market and is well positioned to increase its
service to customers and the limited English proficiency community.
We look forward to partnering with the Cloudbreak team and think
the Company will benefit as a standalone provider of these critical
services."
"We are excited to partner with Cloudbreak and its talented team
to drive this market leading business forward," added Geoffrey Tresley, Principal at GTCR. "Cloudbreak
delivers a strong value proposition to its healthcare clients,
improving quality of care and patient satisfaction."
"GTCR brings a wealth of experience in healthcare technology and
a deep understanding of Cloudbreak's potential. We look forward to
partnering with the team to fulfill our mission of providing
equitable healthcare access to limited English proficiency and deaf
and hard-of-hearing populations now as an independent company,"
said Andy Panos, Co-Founder and
President of Cloudbreak.
Monroe and Barings are providing debt financing support for the
transaction. Kirkland & Ellis LLP provided legal
counsel.
About GTCR
Founded in 1980, GTCR is a leading private
equity firm that pioneered The Leaders Strategy™ – finding and
partnering with management leaders in core domains to identify,
acquire and build market-leading companies through organic growth
and strategic acquisitions. GTCR is focused on investing in
transformative growth in companies in the Business & Consumer
Services, Financial Services & Technology, Healthcare and
Technology, Media & Telecommunications sectors. Since its
inception, GTCR has invested more than $25
billion in over 270 companies, and the firm currently
manages more than $35 billion in
equity capital. GTCR is based in Chicago with offices in New York and West Palm Beach. For more
information, please visit www.gtcr.com. Follow us
on LinkedIn.
Forward-Looking Statements
This press release
contains forward-looking statements within the meaning of U.S.
federal securities laws. Such forward-looking statements include,
but are not limited to, statements regarding obtaining customary
regulatory and stockholder approval, the closing, including its
timing, of the sale of Cloudbreak, the use of proceeds of the
sale, the projected operation and financial performance
of UpHealth and its various subsidiaries, including
following the sale of Cloudbreak, its product offerings and
developments and reception of its product by customers,
and UpHealth's expectations, hopes, beliefs, intentions,
plans, prospects or strategies regarding the future revenue and the
business plans of UpHealth's management team. Any
statements contained herein that are not statements of historical
fact may be deemed to be forward-looking statements. In addition,
any statements that refer to projections, forecasts, or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking statements. The words
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"intends," "may," "might," "plan," "possible," "potential,"
"predict," "project," "should," "would" and similar expressions may
identify forward-looking statements, but the absence of these words
does not mean that a statement is not forward-looking. The
forward-looking statements contained in this press release are
based on certain assumptions and analyses made by the management
of UpHealth considering their respective experience and
perception of historical trends, current conditions, and expected
future developments and their potential effects
on UpHealth as well as other factors they believe are
appropriate in the circumstances. There can be no assurance that
future developments affecting UpHealth will be those
anticipated. These forward-looking statements involve a number of
risks, uncertainties (some of which are beyond the control of the
parties), or other assumptions that may cause actual results or
performance to be materially different from those expressed or
implied by these forward-looking statements, including the closing
conditions for the sale of Cloudbreak not being
satisfied, the ability of the parties to close the sale on the
expected closing date or at all, the ability
of UpHealth to service or otherwise pay its debt
obligations, including to holders
of UpHealth's convertible notes in the event the closing
does not occur, the mix of services utilized by UpHealth's
customers and such customers' needs for these services, market
acceptance of new service offerings, the ability
of UpHealth to expand what it does for existing
customers as well as to add new customers, uncertainty with respect
to how the ICA or the Indian courts shall decide various matters
that are before them or that the Glocal Board will act in
compliance with their fiduciary duties to their shareholders,
that UpHealth will have sufficient capital to operate as
anticipated, and the impact that the novel coronavirus and the
illness, COVID-19, that it causes, as well as government responses
to deal with the spread of this illness and the reopening of
economies that have been closed as part of these responses, may
have on UpHealth's operations, the demand
for UpHealth's products, global supply chains and economic
activity in general. Should one or more of these risks or
uncertainties materialize or should any of the assumptions being
made prove incorrect, actual results may vary in material respects
from those projected in these forward-looking
statements. UpHealth undertakes no obligation to update or
revise any forward-looking statements, whether because of new
information, future events, or otherwise, except as may be required
under applicable securities laws.
GTCR Media Contact
Andrew Johnson
212.835.7042
andrew.johnson@gtcr.com
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SOURCE GTCR