Warburg Pincus is exploring strategic options for its portfolio company Modernizing Medicine (ModMed), which could include a sale in a deal valued at over $5bn, including debt, according to a report by Reuters citing unnamed sources familiar with the matter.
The Boca Raton, Florida-based healthcare technology provider has been a key investment for Warburg Pincus since 2017 and has supported its growth in the healthcare software sector, offering solutions that streamline clinic operations and manage electronic health records (EHR). The company serves over 40,000 healthcare providers and employs more than 1,200 professionals.
According to the sources, Warburg Pincus is now working with a financial adviser to gauge interest from potential buyers, including other private equity firms. While deliberations are in the early stages, the firm is reportedly considering various options, such as a full sale, a partial stake sale, or retaining its ownership in ModMed.
Warburg Pincus previously explored a sale of ModMed in 2022, though talks did not progress. The renewed discussions reflect heightened market interest in healthcare technology, driven by increased demand for automation and efficiency in clinical operations.
