Global private equity firm Warburg Pincus is to acquire a majority interest in WebPT from previous investor, Battery Ventures.
Since its launch in 2008, WebPT has maintained a track record of steady growth. Today, it provides electronic medical record (EMR) and practice management software for outpatient physical therapists, occupational therapists and speech-language pathologists.
The fast-growing healthcare software-as-a-service (SaaS) company – which was recently named to the Inc. 5000 list for the seventh-consecutive year – has become the category leader in its space with 85,000 customers at more than 15,000 clinics across the US and its territories.
“Warburg Pincus has an unrivalled history of success in healthcare and technology, and their investment speaks volumes about their belief in WebPT’s vision and purpose as well as the future of the rehab therapy industry,” says WebPT CEO Nancy Ham. “Rehab therapy has vast potential to improve health outcomes at scale and significantly reduce costs for patients and providers. Currently, however, 90% of people who could benefit from rehab therapy aren’t receiving it. We’re on a mission to change that, and Warburg Pincus is perfectly positioned to help us scale to reach those individuals and affect the industry as a whole.”
“WebPT is a best-in-class rehab therapy platform and represents a significant opportunity for growth given the shift toward value-based care in the rehab therapy market,” says TJ Carella, Managing Director, Warburg Pincus.
“We believe WebPT is a strong addition to our HCIT portfolio and look forward to partnering with Nancy and the entire team to help accelerate growth, advance innovation and support their clients,” adds Amr Kronfol and Andrew Park, Managing Directors at Warburg Pincus.
Co-founder Dr. Heidi Jannenga, PT, DPT, ATC, will assume the role of Chief Clinical Officer while maintaining ownership interest. Jannenga will continue to advise on the company’s strategic direction and product innovation, while advocating for rehab therapy on a national and international scale.
“WebPT set out more than a decade ago to empower the PT, OT and SLP professions and fight for rehab therapy’s rightful place in the healthcare continuum,” says Dr Heidi Jannenga. “We are grateful to Battery Ventures for their impeccable support and guidance, which has helped us grow exponentially over the last five years. While our business has evolved, we’ve stayed true to our mission of empowering rehab therapists to achieve greatness in practice. Now, our new partnership with Warburg Pincus will give us the tools and resources we need to make the greatest possible impact on health care and help rehab therapists expand their reach to the millions of people who could benefit from receiving musculoskeletal care.”
The investment in WebPT comes as the USD35-billion rehab therapy market is projected to expand, influenced by an ageing and active US population and demand for treatment pathways that reduce opioid exposure. Furthermore, the American Academy of Orthopaedic Surgeons reports that an estimated 126.6 million Americans (one in two adults) are affected by a musculoskeletal condition, which costs an estimated USD213 billion in annual treatment, care and lost wages.
Aeris Partners served as the exclusive financial advisor to WebPT and Battery Ventures.
