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The Wire

June 28, 2021

TA, Five Arrows-backed RLDatix wins auction for Hg, Vista-backed Allocate, Wellspring's rebraded RAYUS Radiology is on a fast consolidation track

 

Happy Monday!

 

RLDatix, backed by TA Associates and Five Arrows Principal Investments, said Monday it is buying Allocate Software -- just a few days after PE Hub wrote the healthcare-focused workforce management SaaS business had fielded its latest round of bids. Allocate’s current owners are Hg and Vista Equity. Financial terms weren’t disclosed, but sources recently told PE Hub the William Blair and Arma Partners-conducted sale process was expected to produce a deal valued in the $1.3 billion to $1.5 billion range, or in the low £900 million range to up to some £1.1 billion (applying a 20x-25x EBITDA multiple). TA joined Five Arrows as an investor in RLDatix in May 2018, and the platform has remained an active consolidator in the popular GRC sector since that time.

 

Growth mode: Wellspring Capital Management is rebranding its radiology platform RAYUS Radiology as it strikes another deal. More M&A is also imminent as a new CEO looks to crank up growth with a more holistic game plan. In its latest bet, the company formerly known as Center for Diagnostic Imaging has snapped up Washington's InHealth Imaging. CEO Kim Tzoumakas, who took the reins in March, told PE Hub that RAYUS – which was founded as one center in Minneapolis 40 years ago – has the ability to double in size over the next two years. She added that two more deals would be announced in the next month. Sources familiar with RAYUS previously told PE Hub that the company was projecting $115 million in EBITDA this year, up from $75 million in adjusted 2018 EBITDA. As the name change reflects, RAYUS...

 

Read the full wire commentary on PE Hub... 

 

That's it! Have a great week ahead. As always, hit me up with tips n' gossip, feedback, The Drama or whatever at springle@buyoutsinsider.com. 

 

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Also of note (may require subscriptions)

Fundraising: GPI Capital, led by former executives with Ontario Teachers’ Pension Plan, is back in the market with a second growth and structured equity fund, writes Buyouts. GPI makes non-control growth and structured equity investments in North American businesses in technology, consumer and industrial sectors. Read it on Buyouts.