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GTCR is looking to sell its healthcare tech company Cedar Gate Technologies, with a target valuation exceeding $1 billion, according to sources familiar with the situation.
The firm, based in Chicago, is collaborating with advisors for the sale, which is anticipated to attract interest from both strategic buyers and competitors, according to four insiders. Final offers are expected to be submitted in the upcoming month, two of these sources mentioned.
Cedar Gate’s technology enables users to analyze vast amounts of data, offering tools for patient analytics, population health, and payment insights. Its services reach over 60 million insured individuals in the U.S.
GTCR aims for a valuation of over $1 billion, including debt, for the Connecticut-based enterprise. If the sale goes through, it will add to a series of successful private equity exits, occurring during a downturn in mergers and acquisitions, triggered by the market instability from President Donald Trump’s tariff policies.
Sources cautioned that the sale isn’t guaranteed; GTCR may choose to retain the company or sell just a part of it. GTCR provided no comments, and Cedar Gate did not respond to inquiries for feedback.
The auction occurs in what is expected to be a significant year for GTCR, which was established in 1980.
This month, GTCR also announced it would sell its 55% stake in Worldpay to fintech company FIS in a cash-and-stock deal, valuing Worldpay at $24.2 billion—less than two years after acquiring it for $18.5 billion.
This exit has yielded GTCR a two-fold return on its investment and is set to bring in billions, as previously reported by the FT.
GTCR’s quick exit from Worldpay contrasts with the broader private equity landscape, where many competitors have held onto their investments longer to avoid selling assets at lower valuations.
This situation has been worsened by difficulties in financing debt and the slower-than-anticipated interest rate reductions by the U.S. Federal Reserve, affecting leveraged buyouts.
GTCR has also secured a deal to sell a stake in Ultimus Fund Solutions, a hedge fund data provider, to Stone Point Capital in a deal valuing the company close to $2 billion this week.
GTCR oversees $45 billion in managed assets across various sectors, including healthcare, financial services, and technology.
