Francisco Partners has announced its acquisition of AdvancedMD, a medical software company, from Global Payments for $1.125 billion. This strategic investment by Francisco Partners, a private equity firm known for its focus on technology companies, is expected to close within the current quarter.

Acquisition of AdvancedMD

AdvancedMD, headquartered in South Jordan, Utah, specializes in providing a cloud-native medical office software platform that integrates practice management, electronic health records, patient engagement, and payment solutions. The acquisition follows Global Payments' purchase of AdvancedMD from Marlin Equity Partners in 2018 for $700 million, highlighting the increasing value and demand for healthcare technology solutions.

Current State and Collaborations

AdvancedMD currently serves approximately 40,000 practitioners across 13,000 practices and collaborates with around 850 medical billing companies. Following the acquisition, Amanda Sharp, the current President of AdvancedMD, will become the CEO.

Francisco Partners' Expertise

Francisco Partners has a history of investing in technology companies, including Availity, GoodRx, and Zocdoc. The firm's experience in executing divisional carve-outs positions it well to support AdvancedMD's growth trajectory. The acquisition is seen as a strategic move to position AdvancedMD as a standalone entity, allowing for accelerated investment and expansion.

Enhancing Offerings and User Experience

Francisco Partners aims to enhance AdvancedMD's offerings and improve the integrated user experience for patients, physicians, staff, and billers. The acquisition is expected to bolster AdvancedMD's capabilities and enable it to better serve its clients in the evolving healthcare technology landscape.

Financial and Legal Advisors

Moelis & Company LLC is acting as the financial advisor to Francisco Partners, while Kirkland & Ellis LLP serves as its legal advisor. Bank of America is the exclusive financial advisor to Global Payments, with Wachtell, Lipton, Rosen & Katz providing legal counsel.

Consolidation and Innovation in Healthcare Technology

This investment reflects the broader trend of consolidation and innovation within the healthcare technology market as the industry embraces digital transformation.