Global Healthcare Exchange (GHX), operator of the industry’s largest cloud-based trading network that connects those who buy, sell and use products needed to deliver patient care, today announced it has entered into a definitive agreement to receive a strategic investment from Warburg Pincus, a leading global growth investor.
As part of this transaction, minority investor Thoma Bravo has exited its investment. Existing investor Temasek, an investment company headquartered in Singapore, will remain the majority equityholder, and both Temasek and GHX are supportive of the investment by Warburg Pincus. The terms of the transaction were not disclosed.
“On behalf of the board and the existing equityholders, we welcome Warburg Pincus as an investor. Their addition to GHX’s ownership will help the company further invest and innovate in the areas that will be transformative for healthcare,” said Mukul Chawla, GHX Board Member, and a representative of the company’s majority equityholder, Temasek.
Headquartered in Louisville, Colo., GHX has employees in the United States, Canada and Europe and is known for operating the largest healthcare trading network representing more than 80% of licensed beds in the U.S. and more than 85% of med-surg products flow through the platform. Following its acquisition of Lumere in 2020, GHX also operates the largest unified data core of item, vendor, transaction data and clinical evidence. The company’s expertise in data and analytics helps supply chain, clinical and financial teams around the world make more informed decisions.
“GHX has built a solid foundation for growth and market dynamics have presented opportunities for us to deliver even more value to our customers,” said Bruce Johnson, president and CEO, GHX. “The addition of Warburg Pincus to our equityholder base is an additional plus. Besides the new investment possibilities this transaction gives rise to, it will also enhance the impact of our existing products and support long-term growth.”
With more than twenty years of experience, GHX has consistently delivered on its commitment to empowering healthcare organizations to enable better patient care while reducing cost. In the last 12 months, GHX has helped deliver more than $1.5 billion in savings to healthcare through more automated, faster and accurate processes. To learn more about GHX’s commitment and vision for the future, view Bruce Johnson’s 2021 Summit LIVE keynote: https://www.ghxsummit.com/.
“GHX is uniquely positioned to help simplify the business of healthcare to improve patient outcomes. Bruce and his team’s passion for reimagining the way in which care is delivered and paid for was evident and we found common ground in this aim,” said Andrew Park, Managing Director, Warburg Pincus. “The GHX team has shown a deep commitment to serving its customer community and cemented its market leadership. We look forward to helping GHX continue to build upon its strong legacy of making a difference,” added Amr Kronfol, Managing Director, Warburg Pincus.
Healthcare models are increasingly facing disruption. “Care anywhere” is forecasted to roughly double in the next five years and the move to value-based care has been accelerated. Navigating this change will require improved industry-wide collaboration, interoperability, patient-centered decision-making and greater agility and resiliency. GHX’s technology and services are expected to become even more essential.
J.P. Morgan Securities LLC acted as exclusive financial advisor to GHX, and Cleary Gottlieb Steen & Hamilton LLP acted as legal advisor to GHX.
Building on decades of collaboration among providers, manufacturers, distributors and other industry stakeholders, Global Healthcare Exchange, LLC (GHX) is leading the charge in helping organizations run the new business of healthcare. By automating key business processes and translating evidence-based analytics and data into meaningful action, GHX is helping the healthcare ecosystem to move faster, operate more intelligently and achieve greater outcomes. With the support of GHX, healthcare organizations have removed billions of dollars of wasteful healthcare spend. For more information on GHX’s suite of world-class, cloud-based supply chain solutions, visit www.ghx.com and The Healthcare Hub. GHX has also launched a COVID-19 Information Center that provides a wealth of free resources and access to data and information needed to help serve patients and protect staff during the pandemic.
About Warburg Pincus
Warburg Pincus LLC is a leading global growth investor. The firm has more than $60 billion in private equity assets under management. Since inception, the firm has invested more than $12 billion in more than 160 healthcare companies and over $22 billion in more than 340 technology companies. The intersection of these two sectors is a key area of focus for the firm, with current investments including Aetion, Experity, Helix, Intelligent Medical Objects, Modernizing Medicine, Qualifacts+Credible, Quantum Health, SOC Telemed, and WebPT. Founded in 1966, Warburg Pincus has raised 19 private equity funds, which have invested more than $90 billion in over 930 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information, please visit www.warburgpincus.com.
Temasek is an investment company with a net portfolio value of US$214 billion (S$306 billion) as at 31 March 2020. Its three roles as an Investor, Institution and Steward, as defined in the Temasek Charter, shape Temasek’s ethos to do well, do right and do good. Temasek actively seeks sustainable solutions to address present and future challenges, through investment and other opportunities that help to bring about a better, smarter and more sustainable world. For more information on Temasek, please visit www.temasek.com.sg.