GovCIO Acquires Veterans Affairs Telehealth Supplier from H.I.G. Capital-Backed Iron Bow

Authorities know-how contractor GovCIO has acquired SoldierPoint Digital Well being from Iron Bow Applied sciences, gaining management of digital well being companies that attain 2.7 million veterans by Division of Veterans Affairs packages.

The acquisition brings SoldierPoint’s 300-person workforce underneath GovCIO’s administration together with a $2 billion, seven-year Related Care Built-in Community contract supporting telehealth supply to greater than 4 million veterans. Deal phrases weren’t made public.

Iron Bow Applied sciences, a portfolio firm of H.I.G. Capital, will use proceeds to deal with its major IT options enterprise serving authorities and industrial purchasers. The Miami-based non-public fairness agency had labored with Iron Bow administration to transform SoldierPoint from hardware-focused operations right into a digital companies platform.

Digital Well being Platform Transformation 

SoldierPoint’s enterprise mannequin underwent substantial adjustments throughout H.I.G.’s possession interval, shifting from fundamental telehealth {hardware} provision to complete digital software improvement and care innovation companies. This operational restructuring resulted in earnings development exceeding 100% for the division.

Jeff Zanarini, H.I.G. managing director, famous the agency’s funding in increasing SoldierPoint’s service capabilities throughout the VA system. “We’ve facilitated investments to develop SoldierPoint’s position in delivering mission-critical, digital well being and telemedicine companies to the VA,” he said.

The telehealth platform traces its origins to a 2010 VA initiative that has grown into one of many world’s largest digital well being packages. SoldierPoint’s know-how helps veterans throughout the VA’s community of medical services and distant care packages.

GovCIO Integration Plans 

Welsh, Carson, Anderson & Stowe portfolio firm GovCIO will combine SoldierPoint operations into its current Veterans Affairs enterprise unit. The acquisition expands GovCIO’s healthcare know-how portfolio whereas strengthening its place as a significant VA contractor.

GovCIO Chief Working Officer Joe Cormier described the transaction as including “necessary capabilities that improve our skill to help the mission of our largest shopper, the Division of Veteran Affairs.”

SoldierPoint staff will be a part of GovCIO’s Veteran and Enterprise Expertise Options division. GovCIO plans to use synthetic intelligence instruments and low-code improvement platforms to boost service supply underneath current VA contracts.

Non-public Fairness Exercise in GovTech 

The transaction represents continued non-public fairness curiosity in authorities know-how belongings, notably these with established federal contracts and specialised service capabilities. H.I.G. Capital maintains a number of investments within the authorities contractor area past Iron Bow.

Current H.I.G. transactions embrace creating Pellera Applied sciences by combining IT companies companies Converge Expertise Options and Mainline Info Methods. The merged entity generates roughly $4 billion in annual income and focuses on enterprise cybersecurity, cloud computing and synthetic intelligence implementations.

Iron Bow will retain its core know-how consulting and implementation companies for presidency companies, healthcare organizations and industrial enterprises. The corporate companions with main software program and {hardware} distributors to ship built-in know-how options.

H.I.G. Capital, which manages $70 billion throughout a number of funding methods, has pursued comparable buy-and-build approaches in healthcare know-how. Earlier this yr, the agency accomplished the sale of specialty pharmacy Soleo Well being and purchased income cycle administration supplier GetixHealth.

Transaction advisors included Jefferies as monetary advisor and McDermott Will & Schulte offering authorized counsel to Iron Bow and H.I.G. Capital.

Each corporations anticipate the separation will allow extra targeted development methods, with Iron Bow concentrating on enterprise IT companies whereas GovCIO expands its federal healthcare know-how capabilities.