Lightyear Capital, Oak HC/FT and Greater Sum Ventures close on sale of Therapy Brands to KKR

Funds affiliated with Lightyear Capital (Lightyear), Oak HC/FT and Greater Sum Ventures (GSV) have completed the sale of Therapy Brands to KKR. 

Financial terms of the transaction have not been disclosed. Funds affiliated with Lightyear and Oak HC/FT acquired a majority stake in Therapy Brands in July 2018.

Therapy Brands provides practice management, integrated patient payments, revenue cycle management, patient engagement, tele-health and data management solutions for mental and behavioural health practices to support their clinical, administrative and billing needs. The Therapy Brands suite of software tools enables more than 28,000 practices in psychotherapy, applied behavioural analysis, substance use recovery and physical therapy to streamline their practices and focus on their patients.

“We are delighted with the outcome of our investment in Therapy Brands,” says Mark F Vassallo, Managing Partner of Lightyear Capital. “Over the course of our investment, Therapy Brands tripled in size, completing nine strategic acquisitions, increasing its client base, growing revenue by cross-selling value-added solutions and doubling its payments penetration. Our experience with Therapy Brands further supports our pursuit of attractive investment opportunities in embedded payments models as we see tremendous demand across a number of fast-growing verticals. We wish Kimberly and the entire team at Therapy Brands great continued success.”

“Oak HC/FT’s investment in Therapy Brands highlights our dual aim of backing tech-enabled companies that are increasing the quality and lowering the cost of healthcare,” says Andrew Adams, Co-Founder and Managing Partner of Oak HC/FT. “We are proud of all that Therapy Brands – led by a dedicated team – has accomplished and we’re looking forward to seeing how the company continues to innovate at a time when mental and behavioural health care is more in demand and important than ever.”

“We are pleased with the success of our investment in Therapy Brands,” says Ross Croley, CEO and Founder of GSV. “From the platform’s inception, we’ve provided strategic guidance to the management team on acquisitions and operations, and it’s exciting to see the execution and outcome of our thesis.”

“I want to thank the entire Therapy Brands team for their invaluable support and investment to drive client growth, adoption of our value-added solutions and expand our portfolio,” says Kimberly O’Loughlin, CEO of Therapy Brands. “While we are excited about partnering with KKR on our next chapter of growth, we are grateful to Lightyear, Oak HC/FT and GSV for their support in enabling our success.”

William Blair and TripleTree acted as financial advisors and Davis Polk & Wardwell LLP as legal advisor to Therapy Brands.