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GTCR has kicked off a sale of healthcare technology company Cedar Gate Technologies, which is expected to fetch more than $1bn, in what would be the latest in a series of exits by the private equity group, according to people familiar with the matter.
The Chicago-based firm is working with advisers on the sale, which is likely to draw interest from strategic buyers as well as rival sponsors, four people said. Final bids are expected in the coming month, two of them added.
Cedar Gate’s technology allows users to sift tens of thousands of pieces of data, providing them with a platform that offers patient analytics, population health and payments information. Its customers serve more than 60mn insured Americans.
GTCR expects to fetch more than $1bn including debt for the Greenwich, Connecticut-based business. If a sale is clinched, it will be the latest in a series of successful private equity exits during a dry patch for mergers and acquisitions as deal activity has dropped because of market turmoil unleashed by President Donald Trump’s tariff policy.
The people warned that a sale of the company is not guaranteed and GTCR could opt to hold on to the company, or sell a stake in the business. GTCR declined to comment. Cedar Gate did not immediately respond to a request for comment.
The auction process comes amid what is set to be a banner year for GTCR, which was founded in 1980.
This month, GTCR agreed to sell its 55 per cent stake in Worldpay to fintech group FIS in a cash-and-stock deal which valued the payments provider at $24.2bn, less than two years after buying the company for $18.5bn.
The exit netted GTCR a two-fold return on its investment and has put it on track to reap a multi-billion-dollar windfall, the FT previously reported.
GTCR’s speedy exit from Worldpay strikes a contrast with the private equity deal market at large where rivals have largely held on to assets for longer to avoid selling portfolio companies at a cut-price valuation.
That problem has been compounded by struggles with debt financing and the fact that slower-than-expected interest rate cuts from the US Federal Reserve have hobbled leveraged buyouts.
GTCR also struck a deal to sell a stake in hedge fund data provider Ultimus Fund Solutions to Stone Point Capital in a deal valuing the business at approaching $2bn this week.
GTCR controls $45bn of assets under management, deployed across several sectors including healthcare, financial services and technology.
