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Falcon Co-Advises Citra Health Solutions in its Sale to Cedar Gate Technologies

WAYNE, PENNSYLVANIA – June 25, 2020: Falcon Capital Partners, LLC (“Falcon”), a leading middle-market investment bank, is pleased to announce the sale of Citra Health Solutions (“Citra”), a portfolio company of Great Point Partners (“GPP”), to Cedar Gate Technologies (“Cedar Gate”), a portfolio company of GTCR (“GTCR”).
Citra, headquartered in Morrisville, North Carolina provides a one-contract, connected solution for clinical, financial, and administrative requirements. Solving for the needs of providers, payers, health systems and employers in the transition to value-based care, Citra empowers clients with proven technology, population health, analytics, care management, and administrative services to lower the cost of care and improve quality. Citra currently serves 6 of the top 7 Health Plans, 7 Fortune 500 Companies, 50+ IPAs and MSOs managing commercial, Medicare and Medicaid populations, and 100+ Provider Groups, Hospitals, Universities and Integrated Delivery Networks throughout the United States and in Puerto Rico.
GPP, founded in 2003 and based in Greenwich, CT, is a leading healthcare investment firm with approximately $2.0 billion of equity capital currently under management. Their investment in Citra began in 2014. Adam Dolder, Managing Director at GPP commented, “This successful investment was grounded in our thematic approach in 2014 to capitalize on the changes in the health care system driven by increasing value-based care trends. We were fortunate to recruit Scott Sanner (CEO) and an entirely new team to drive Citra and together, we made the key decision to focus the Company on its software solution and are thrilled with the outcome.” Vice President Eddie Hjerpe added, “Over the last five years, the Company grew revenue at a 18% rate per year and EBITDA at a 43% rate per year.”
Cedar Gate is a leading value-based care performance management company founded in 2014 by David B. Snow Jr. in partnership with GTCR, a leading Chicago-based private equity firm. In 2018, Ascension Ventures, a strategic healthcare venture firm, became part of the ownership group. Cedar Gate provides high-performance analytic, technological and advisory services to providers, payers and self-insured employers to enable them to meet and exceed the performance thresholds of value-based care contracts, networks and programs. Cedar Gate systems are helping clients realize value from over $91 billion of medical spend associated with risk-based contracts and programs that affect 3.2 million covered lives. Cedar Gate is the leading provider of prospective bundled payment solutions with 20+ years of experience and having processed more than 2.25 million distinct bundles.
By acquiring Citra, Cedar Gate expands its software and services capabilities across the full spectrum of value-based care. By combining Cedar Gate’s existing capabilities in risk-based contract performance management, high-performance analytics, bundled payment solutions and advisory services, the acquisition now adds capitation through Citra’s market-leading EZ-Suite platform. “The addition of Citra couldn’t come at a better time,” said David B. Snow Jr., Chief Executive Officer of Cedar Gate Technologies. “Now, more than ever, health systems are looking for ways to transition away from fee-for-service as value-based care becomes the new standard. Through Citra’s long-standing capitation capabilities, we now provide our clients with the ability to design, administer and optimize all risk-based arrangements.”
Falcon served as co-financial advisor to Citra and GPP alongside Cain Brothers. The terms of the transaction were not disclosed. The complete press release can be found here.
This transaction represents Falcon’s continued work in healthcare information technology (HCIT) and thematically within value-based care initiatives. The Falcon deal team was led by Managing Director Ted Stack and Senior Associate Conrad Olenik. For more information please contact Ted at tstack@falconllc.com, 610-989-8901 or Conrad at colenik@falconllc.com, 610-989-8905.