Waud Capital Announces Successful Exit of GI Alliance Following Close of its Apollo-led Recapitalization

Rhea-AI Summary

Waud Capital Partners announced the successful sale of a controlling stake in GI Alliance, valuing the company at $2.2 billion. This transaction involved a physician-led buyout facilitated by funds managed by Apollo (NYSE: APO). GIA, which has grown from 2 to 14 states since its inception in 2018, is now primarily owned by its physician partners, led by CEO James Weber. The shift aims to continue GIA's commitment to high-quality patient care while enhancing its corporate infrastructure.

Positive

• Valuation of GI Alliance at $2.2 billion highlights significant market presence.
• Transaction supports physician-led ownership, enhancing strategic focus.
• Growth from 2 to 14 states indicates successful expansion and market strategy.

Negative

• None.

Nation's largest gastroenterology practice management company to pursue continued growth with new investment partner

DALLAS, Sept. 15, 2022 /PRNewswire/ -- Waud Capital Partners, L.L.C. ("WCP") today announced it has completed its sale of a controlling ownership stake in GI Alliance ("GIA"), the nation's largest gastroenterology practice management company, as part of a physician-led buyout and recapitalization (the "Transaction").  The Transaction valued GIA at $2.2 billion and was facilitated by an investment from funds managed by Apollo (NYSE: APO).  As a result of the Transaction, GI Alliance's physician owners, led by James Weber M.D., CEO, own a controlling equity interest in GIA. 

GIA was formed in 2018 in partnership with WCP and has since established itself as the nation's largest independent gastroenterology practice management company through organic growth, ancillary investment, and practice affiliation.  Since WCP's initial investment, GIA expanded from 2 to 14 states, and has become the partner of choice for high-quality gastroenterology practices looking to benefit from a national support services organization.  GIA's strategic priority has been to maintain its unwavering commitment to support clinical quality, complemented by significant investment in corporate infrastructure and systems, while pursuing and maintaining its position of national leadership.

"GI Alliance has achieved significant growth over the past four years, and I appreciate the support from our committed partners at WCP," said Dr. Weber. "Our primary focus on delivering superior outcomes for patients has continued through this growth. With this transaction, GI Alliance will maintain its vision of being a physician-owned and physician-led organization.  We are excited to embark on this new chapter with Apollo and we want to thank the WCP team for its contributions to our success."

David Neighbours, Partner at WCP, commented, "We are proud to have partnered with Dr. Weber and the team we helped him recruit over the last four years to build one of the leading physician practice management organizations in the U.S. across all medical specialties.  Since the time of our initial investment, GIA has increased its physician count by nearly five times.  This growth was achieved through both organic initiatives and highly targeted, strategic acquisitions. We wish GIA continued success with its new partner, Apollo."

Kirkland & Ellis LLP and Katten Muchin Rosenman LLP served as legal advisors to WCP and GI Alliance's practices and management, respectively.  Latham & Watkins LLP and Houlihan Lokey acted as legal counsel and financial advisor, respectively, to the Apollo funds.  Jefferies acted as financial advisor to GI Alliance and its shareholders.  Greenhill & Co. acted as financial advisor to management and physician owners of GI Alliance.  Blackstone & Ally led the lender group providing committed debt financing for the Transaction.

About GI Alliance

GI Alliance is a physician-led and majority physician-owned GI practice management company providing services to nearly 700 independent gastroenterologists operating in Texas, Arkansas, Arizona, Colorado, Florida, Illinois, Indiana, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Utah, and Washington.  GIA-managed practices focus on providing the highest-quality care to their patients.  In addition to providing operational support for practices, GIA is working to unite gastroenterologists nationwide by aligning interests and improving patient care.  To learn more, please visit www.gialliance.com.

About Waud Capital Partners

Waud Capital Partners is a growth-oriented private equity firm with total capital commitments of approximately $3.7 billion since its founding in 1993. WCP partners with exceptional management teams to build market-leading companies within two industries: healthcare services and software/technology. Since its founding, WCP has successfully completed more than 400 investments, including platform companies and follow-on opportunities. To learn more, please visit www.waudcapital.com. 

Waud Capital Partners Contacts
Antonia Schwartz
312.676.8436
aschwartz@waudcapital.com

Gabriel Torres
312.676.8431
gtorres@waudcapital.com

GI Alliance Contact
Dee Dee Brooks
Head of Communications
(214) 998-3434
deedee.brooks@gialliance.com

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SOURCE Waud Capital Partners

FAQ

What is the value of the GI Alliance transaction involving Apollo?

The GI Alliance transaction was valued at $2.2 billion.

When was the GI Alliance transaction announced?

The announcement was made on September 15, 2022.

Who led the buyout of GI Alliance?

The buyout was led by physician owners, with James Weber as CEO.

What company manages funds in the GI Alliance deal?

The funds in the GI Alliance deal are managed by Apollo (NYSE: APO).

How many states does GI Alliance operate in after the expansion?

GI Alliance expanded its operations to 14 states.