Private equity firm GTCR has acquired cloud-based health care software company Xifin Inc. for an undisclosed amount.
Xifin, headquartered in San Diego, provides cloud-based software and services to diagnostic service providers, aiming to link health care providers and payers. Clients include companies focused on molecular diagnostics, pain management, toxicology, anatomic pathology, radiology, hospital outreach, medical devices and clinical laboratories.
The software is designed to help clients optimize billing and collection practices, automate billing workflow and reduce risks related to regulatory compliance. Lâle White, CEO of Xifin, and the company's management team will stay in place, consistent with the Leader's Strategy that GTCR uses to partner with executives in investments. GTCR won Mergers & Acquisitions M&A Mid-Market Private Equity Firm of the Year award for 2013.
Chicago-based GTCR made the investment from GTCR Fund XI, which closed in 2014 with $3.85 billion in committed capital. The firm has been on a bit of a buying spree lately, picking up Cole-Palmer Instrument Co. from Thermo Fisher Scientific Inc. (NYSE: TMO) for $480 million in July, and Hiperos LLC as an add-on to Opus Global, also in July.
GE Capital and CapitalSource provided financing for the deal, while Kirkland & Ellis LLP provided legal advice.
GTCR is just one of many firms that have made investments in health care-related software companies and cloud-computing groups as more patients come into the U.S. health care system. For more, see "5 Technologies Drive Health Care M&A."