Berkshire Partners and Warburg Pincus to partner for an investment in Ensemble Health Partners Mar 28, 2022
Cincinnati, Ohio, March 28, 2022 (GLOBE NEWSWIRE) -- Ensemble Health Partners (“Ensemble” or “the Company”), a leading provider of technology-enabled revenue cycle management solutions for health systems, including hospitals and affiliated physician groups, announced today that Berkshire Partners and Warburg Pincus have entered into an agreement to make a significant investment in the Company. Bon Secours Mercy Health ("BSMH") will continue as a commercial partner, a shareholder and will remain on the Ensemble board. Golden Gate Capital will retain a minority interest in the Company.
Ensemble partners with nearly 300 hospitals across the United States to improve financial outcomes and patient experiences. Ensemble works with its partners to create a hands-on approach that helps health systems forge a healthier path forward to improve financial performance, the billing process and customer service, allowing providers to focus on improving outcomes and reinvesting into patient care and the patient experience.
The transaction will support Ensemble’s continued growth and allow the Company to invest in new technology and people, building upon Ensemble’s position as the leading innovator in revenue cycle management and allow the Company to continue to deliver outstanding results and best-in-class services.
“Healthcare and the relationship between providers and payors are becoming increasingly complex and the demand for revenue cycle management services is continuing to expand significantly,” said Judson Ivy, Founder, President and CEO of Ensemble. “There is tremendous opportunity to reduce the friction in healthcare for providers and consumers and we want to be at the forefront of innovation that benefits providers and their patients. The addition of two new strategic investment partners will provide Ensemble access to additional capital to support our mission and bring deep expertise and networks within the healthcare industry.”
Ensemble was recently named “Best in KLAS” for full revenue cycle outsourcing for the third consecutive year. The Company is committed to investing in the latest, innovative technology and is developing and deploying new capabilities across the Ensemble IQ ("EIQ") revenue cycle management platform, recently receiving a sixth U.S. patent for innovative automation technology. Most recently, Ensemble invested in a revenue cycle automation platform that studies end-user behavior within the revenue cycle and uses advanced AI to determine the optimal path for each workflow.
“We are proud to partner with Ensemble, the market leader in the growing end-to-end revenue cycle management space,” said Sam Spirn, Managing Director of Berkshire Partners. “Ensemble has experienced exponential growth during the last few years and our investment will help further strengthen the Company’s industry-leading services, products, and technologies.”
“We’re impressed by both Ensemble’s growth and track record of providing exceptional results to healthcare providers,” said TJ Carella, Managing Director, Head of Healthcare, Warburg Pincus. “Our investment will support their adoption of emerging technologies to deliver concrete solutions that bring maximum impact to providers’ bottom line,” added Amr Kronfol, Managing Director, Warburg Pincus
“We are proud of our successful partnership with Judson and the Ensemble management team over the past three years as we made significant investments to help build and transform the business,” said Doug Ceto, a Board representative for Golden Gate Capital. “We look forward to continuing to support the Company alongside Berkshire Partners, Warburg Pincus and BSMH.”
The transaction is subject to customary conditions and approvals.
Guggenheim Securities, LLC served as the exclusive strategic and financial advisor to the Company, and Honigman, LLP provided legal counsel. Financial advisors to Berkshire and Warburg Pincus are Goldman Sachs, TripleTree and William Blair. BofA Securities served as financial advisor to Golden Gate Capital on the transaction. Ropes & Gray LLP provided legal counsel to Berkshire Partners. Cleary Gottlieb Steen & Hamilton LLP provided legal counsel to Warburg Pincus. Ropes & Gray LLP also represented Golden Gate Capital, together with Nob Hill Law Group, P.C. Polsinelli LLP provided legal counsel to Bon Secours Mercy Health.
About Ensemble Health Partners
Ensemble Health Partners is a leading provider of technology-enabled revenue cycle management solutions for health systems, including hospitals and affiliated physician groups. They offer end-to-end revenue cycle solutions as well as a comprehensive suite of point solutions to clients across the country.
About Berkshire Partners
Berkshire Partners, a Boston-based investment firm, has been investing in well-positioned, growing companies for more than 35 years. Berkshire Private Equity has made more than 145 private equity investments since its inception and has a strong history of partnering with management teams to grow the companies in which it invests. In addition to healthcare, the firm also invests in communications, consumer, technology, services, and industrials companies. For additional information, and to see a full list of the firm’s private equity investments, visit www.berkshirepartners.com.
About Warburg Pincus
Warburg Pincus is a leading global growth investor. The firm has more than $73 billion in private equity assets under management. Warburg Pincus is a leading investor in healthcare and technology, investing over $12 billion and $24 billion into healthcare and technology companies, respectively. Notable investments include: Aetion, Alignment Healthcare, BondVet, Experity, Global Healthcare Exchange, Helix, Intelligent Medical Objects, Modernizing Medicine, Qualifacts, Quantum Health, Sotera, Summit Health/CityMD and WebPT. Founded in 1966, Warburg Pincus has raised 20 private equity funds and 2 real estate funds, which have invested more than $100 billion in over 1,000 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore.
About Golden Gate Capital
Golden Gate Capital is a San Francisco-based private equity investment firm with over $19 billion in cumulative committed capital. The principals of Golden Gate Capital have a long and successful history of investing across a wide range of industries and transaction types, including going-privates, corporate divestitures, and recapitalizations, as well as debt and public equity investments. Notable investments sponsored by Golden Gate Capital include Infor, Vector Solutions and 2020 Technologies.
For Ensemble Health Partners:
Director of Strategic Communications
For Berkshire Partners:
Sard Verbinnen & Co.
For Warburg Pincus:
Head of Corporate Communications, Americas
For Golden Gate Capital:
Jenny Gore / Chloe Clifford
Sard Verbinnen & Co