Will Healthcare Reform Spur PE Investment?

Francisco Partners has closed its $126 million private buyout of QuadraMed, a provider of IT solutions for healthcare enterprises that help streamline processes, ensure compliance and help healthcare professionals deliver quality patient care. Francisco acquired the company for $8.50 per common share, a premium of 32.6% at the time of the offer, and $13.70 for each share of QuadraMed's Series A preferred shares. Debt financing was provided by Wells Fargo Foothill and Silicon Valley Bank.

Healthcare deals have lulled over the past couple of months but are likely to pick up now that there is more certainty surrounding healthcare reform and potentially 30 million newly insured people. There have been 87 completed and announced deals in the healthcare industry in the past six months, only eight of which have occurred this month, hopefully a lull before the storm. January was the biggest month with 24 deals before it began declining in February, during which only 16 deals were made, according to the PitchBook Platform. Elder & Disabled Care has been the top sector with 9 deals, followed by Clinics/Outpatients and Healthcare Enterprise Systems with 7 deals each.