TPG and Crowe LLP to Establish Crowe Healthcare Consulting as Independent Company
- Transaction enables Kodiak to operate with greater flexibility and focus, accelerating growth and expanding technology portfolio
- TPG Growth becomes majority shareholder, supporting Kodiak's expansion
- Kodiak serves over 1,800 hospitals and 200,000 practice-based physicians across all 50 states
- None.
Leading Provider of Financial Software and Services to Health Systems Rebranded as Kodiak Solutions
The transaction will enable Kodiak to operate with greater flexibility and focus, positioning the Company to accelerate growth and expand its technology portfolio to better serve healthcare provider organizations across the country. Upon closing of the transaction, TPG Growth, the firm’s middle market and growth equity platform, will become the majority shareholder of the standalone business. Crowe will retain a minority ownership stake in the business, supporting Kodiak going forward.
“For nearly two decades, Kodiak has thrived as part of Crowe, realizing strong growth and building our team to include more than 350 employees. As we look to the future, this transaction establishes Kodiak as an independent company with the resources and flexibility to accelerate our expansion and better serve our growing customer base,” said Bang. “With extensive experience investing behind leading healthcare and software brands, and with deep expertise executing complex carve-outs, TPG is an ideal partner as we enter this next chapter. I look forward to partnering with the TPG team while continuing to benefit from the support of our longstanding partners at Crowe.”
“Investing in market leading companies with a mission to help health systems operate more efficiently and effectively has been a core thematic focus for our healthcare team,” said Zach Ferguson, Managing Director at TPG Growth. “Known for its best-in-class products and services, Kodiak has built very strong customer advocacy with a long list of preeminent healthcare clients across the
Founded in 2005 as the healthcare consulting practice of Crowe, Kodiak has expanded significantly – beginning with its proprietary solution for net revenue reporting, Revenue Cycle Analytics, or RCA – to now offering a broad suite of software and services which help healthcare CFOs solve challenges across financial reporting, revenue cycle, and risk and compliance. The Company currently serves more than 1,800 hospitals and 200,000 practice-based physicians across all 50 states.
“We take tremendous pride in the deeply specialized healthcare consulting business Crowe has cultivated and built with Derek and our healthcare team over the past 20 years. It’s now time for a new phase of growth and success for this practice and team,” said Mark Baer, Crowe LLP CEO. “We believe in this business and remain committed to investing in it alongside TPG. This transaction is a win for our healthcare team and our clients, while also positioning our firm for continued success. It creates more flexibility and agility for Crowe and is a shift in our healthcare strategy to expand our footprint across the broader healthcare ecosystem – offering new, extended services and capabilities to the vast array of companies that make up the sector.”
The transaction is subject to regulatory review and customary closing conditions and is expected to close in the fourth quarter of 2023.
Harris Williams served as financial advisor to Crowe. Winston & Strawn LLP served as legal advisor to Crowe. TripleTree, LLC served as financial advisor to TPG, and Debevoise & Plimpton LLP served as legal counsel.
About TPG
TPG is a leading global alternative asset management firm, founded in
About Crowe LLP
Crowe LLP is a public accounting, consulting and technology firm with offices around the world. Crowe uses its deep industry expertise to provide audit services to public and private entities. The firm and its subsidiaries also help clients make smart decisions that lead to lasting value with its tax, advisory and consulting services, helping businesses uncover hidden opportunities in the market – no matter what challenges the markets present. Crowe is recognized by many organizations as one of the best places to work in the
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Media
TPG
Ari Cohen and Julia Sottosanti
media@tpg.com
Crowe
Manny Goncalves
Chief Strategy & Communications Officer
manuel.goncalves@crowe.com
Source: TPG