Health care providers still have catching up to do, technologically speaking. The technology businesses that provide health care services are increasingly attractive M&A targets, and they are expected to draw buyers for years to come, says Josh Earl, principal at Chicago private equity firm GTCR. GTCR recently acquired software developer Rx30, which makes pharmacy-management programs for hospitals, long-term care facilities and specialty pharmacies. After that deal, the firm sold for-profit hospital business Capella Healthcare to Medical Properties Trust (NYSE: MPW) for $900 million.
In keeping with what the firm calls its “leader’s strategy,” where GTCR partners with management leaders to identify and acquire companies, the firm partnered with Rx30 CEO Steve Wubker for the deal. That strategy won GTCR Mergers & Acquisitions M&A Mid-Market Private Equity Firm of the Year Award for 2013.