KKR to Acquire Therapy Brands for Undisclosed Amount

KKR, an investment firm, announced that it has agreed to acquire a majority interest in Therapy Brands from its existing shareholders – investment funds affiliated with Lightyear Capital, Oak HC/FT, and Greater Sum Ventures.

Existing investor PSG will participate in the transaction alongside KKR and continue to be a minority shareholder in Therapy Brands.

The financial details of the transaction were not disclosed.

Therapy Brands provides end-to-end software solutions to streamline healthcare professionals’ (including mental, behavioral, substance use recovery, applied behavior analysis, and physical rehabilitation healthcare providers) clinical, administrative, and reimbursement workflows.

According to the company, its software solution supports the daily operations of more than 28,000 practices across the U.S., including TheraNest, ShareNote, CodeMetro, AccuPoint, DataFinch, TenEleven, Procentive, Fusion Web Clinic, and A2C.

“Provider and patient-friendly technology-enabled solutions are more important than ever as the demand for mental and behavioral health services continues to rapidly increase,” said Kimberly O’Loughlin, CEO of Therapy Brands. “This support will help us accelerate our mission of making it easier for providers to navigate an increasingly complex administrative landscape so they can spend more time and focus on delivering improved outcomes for their clients.”

Max Lin, a KKR Partner who co-leads the health care industry team for KKR’s Americas Private Equity business, added: “Therapy Brands has developed an impressive portfolio of best-in-class software tools and mission-critical solutions to help mental health providers modernize their practices. We look forward to working with the team in accelerating the growth of the platform and finding additional ways of delivering enhanced value to its clinicians.”

William Blair and TripleTree are acting as financial advisors and Davis Polk & Wardwell as legal advisor to Therapy Brands. Kirkland & Ellis is serving as legal advisor to KKR.

A total of 184 digital health companies were acquired in 2020, compared to 169 in 2019, according to Mercom’s Q4 and 2020 Digital Health Funding and M&A Report. Learn more about M&A activity in the digital health sector.