TransUnion has signed a definitive agreement to sell TransUnion Healthcare, Inc. (“TransUnion Healthcare”) to nThrive, Inc., a leading healthcare revenue cycle management (“RCM”) software-as-a-service (“SaaS”) platform backed by Clearlake Capital Group, L.P. (together with certain affiliates, “Clearlake”).
The transaction consideration is $1.735 billion in cash, and the transaction is expected to result in approximately $1.4 billion in after-tax proceeds at current tax rates. The parties are targeting to close the transaction in the fourth quarter of 2021, subject to the satisfaction of customary closing conditions and regulatory approvals. The proceeds will help TransUnion prepay debt and fund future M&A transactions that reinforce, extend and scale its core positions and which can be leveraged globally – such as the pending acquisitions of Neustar and Sontiq, both of which are expected to accelerate TransUnion’s long-term revenue growth.
“With the divestiture of TransUnion Healthcare, TransUnion will bring greater focus to our position as a global information and insights company providing credit, marketing and fraud mitigation solutions to help businesses and consumers transact with greater certainty,” said Chris Cartwright, President and CEO of TransUnion. “The transaction will also allow TransUnion Healthcare to benefit from ownership whose priorities and expertise are solely focused on healthcare revenue cycle management.”
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Clearlake intends to combine TransUnion Healthcare with its portfolio company, nThrive, to strengthen its portfolio with powerful healthcare data and analytics capabilities that enable simple, efficient and accurate end-to-end RCM outcomes for healthcare providers and payers.
“We are confident that nThrive’s outstanding leadership and complementary portfolio make nThrive an ideal home for TransUnion Healthcare, and we look forward to a seamless transition,” added Cartwright.
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