Health-tech company Modernizing Medicine announced Wednesday that Warburg Pincus, a global private equity firm focused on growth-stage companies, has invested $231 million into the company.
The funding will be used to provide liquidity to existing shareholders, fund further expansion and support future strategic endeavors, the Boca Raton-based company said.
Founded in 2010 by Daniel Cane and Dr. Michael Sherling, Modernizing Medicine has been one of the early success stories in South Florida. Cane, a serial entrepreneur who earlier in his career had co-founded and exited education-tech company Blackboard, met Sherling, his future co-founder, in the doctor’s office. Their first and flagship product is EMA, which is a mobile, cloud-based, specialty-specific electronic health record system now used by thousands of specialty practices nationwide. Modernizing Medicine now offers a full suite of products and services including practice management, revenue cycle management, telehealth for dermatology, analytics and more. Before this latest mega-round of funding, ModMed had raised about $100 million, including $38 million in 2015.
“We expect this infusion of capital from Warburg Pincus to be instrumental in advancing our mission to transform how healthcare information is created, consumed and utilized to increase efficiency and improve outcomes,” said Cane, CEO, in a statement. “Warburg Pincus brings deep experience in the healthcare technology sector and this investment can help further our growth, bolster innovation and support our clients.”
The company said the latest round of funding will allow it to pursue strategic objectives that may include deployment of an ecommerce platform and investment in data exchange to help practices move clinically relevant data more effectively, Modernizing Medicine said.
Fred Hassan, managing director of Warburg Pincus and the former CEO and chairman of Schering Plough, and Amr Kronfol, Warburg Pincus principal, will join Modernizing Medicine’s board of directors. “We see meaningful opportunities for the company’s continued growth and acceleration of existing products and initiatives, and we look forward to partnering with Dan, Michael and the entire management team,” said Andrew Park, principal of Warburg Pincus.
Founded in 1966 and headquartered in New York, Warburg Pincus, with an active protfolio of more than 140 companies, has more than $44 billion in private equity assets under management. Warburg Pincus has been an active investor in the health technology sector, with current investments including DocuTAP, Helix, Intelligent Medical Objects, Specialists On Call, and A Place For Mom.