SAN FRANCISCO & FORT WORTH, Texas & INDIANAPOLIS--(BUSINESS WIRE)--TPG (NASDAQ: TPG), a global alternative asset management firm, and Crowe LLP, a public accounting, consulting, and technology firm, today announced that they have signed a definitive agreement for TPG to acquire a majority stake in Crowe Healthcare Consulting, establishing it as an independent entity. Crowe Healthcare Consulting Founder and Managing Partner, Derek Bang, and the existing management team will lead the newly independent business, rebranded as Kodiak Solutions (“Kodiak” or the “Company”), after the transaction closes.
The transaction will enable Kodiak to operate with greater flexibility and focus, positioning the Company to accelerate growth and expand its technology portfolio to better serve healthcare provider organizations across the country. Upon closing of the transaction, TPG Growth, the firm’s middle market and growth equity platform, will become the majority shareholder of the standalone business. Crowe will retain a minority ownership stake in the business, supporting Kodiak going forward.
“For nearly two decades, Kodiak has thrived as part of Crowe, realizing strong growth and building our team to include more than 350 employees. As we look to the future, this transaction establishes Kodiak as an independent company with the resources and flexibility to accelerate our expansion and better serve our growing customer base,” said Bang. “With extensive experience investing behind leading healthcare and software brands, and with deep expertise executing complex carve-outs, TPG is an ideal partner as we enter this next chapter. I look forward to partnering with the TPG team while continuing to benefit from the support of our longstanding partners at Crowe.”
“Investing in market leading companies with a mission to help health systems operate more efficiently and effectively has been a core thematic focus for our healthcare team,” said Zach Ferguson, Managing Director at TPG Growth. “Known for its best-in-class products and services, Kodiak has built very strong customer advocacy with a long list of preeminent healthcare clients across the U.S. We want to thank the Crowe organization for their role in building such a high performing business that creates significant value for its healthcare customers and partners. We are excited to partner with Derek and the entire Kodiak team to build on this strong foundation with investments in both organic and inorganic growth, and look forward to partnering with Crowe as co-investors going forward.”
Founded in 2005 as the healthcare consulting practice of Crowe, Kodiak has expanded significantly – beginning with its proprietary solution for net revenue reporting, Revenue Cycle Analytics, or RCA – to now offering a broad suite of software and services which help healthcare CFOs solve challenges across financial reporting, revenue cycle, and risk and compliance. The Company currently serves more than 1,800 hospitals and 200,000 practice-based physicians across all 50 states.
“We take tremendous pride in the deeply specialized healthcare consulting business Crowe has cultivated and built with Derek and our healthcare team over the past 20 years. It’s now time for a new phase of growth and success for this practice and team,” said Mark Baer, Crowe LLP CEO. “We believe in this business and remain committed to investing in it alongside TPG. This transaction is a win for our healthcare team and our clients, while also positioning our firm for continued success. It creates more flexibility and agility for Crowe and is a shift in our healthcare strategy to expand our footprint across the broader healthcare ecosystem – offering new, extended services and capabilities to the vast array of companies that make up the sector.”
The transaction is subject to regulatory review and customary closing conditions and is expected to close in the fourth quarter of 2023.
Harris Williams served as financial advisor to Crowe. Winston & Strawn LLP served as legal advisor to Crowe. TripleTree, LLC served as financial advisor to TPG, and Debevoise & Plimpton LLP served as legal counsel.
TPG is a leading global alternative asset management firm, founded in San Francisco in 1992, with $139 billion of assets under management and investment and operational teams around the world. TPG invests across five multi-strategy platforms: Capital, Growth, Impact, Real Estate, and Market Solutions and our unique strategy is driven by collaboration, innovation, and inclusion. Our teams combine deep product and sector experience with broad capabilities and expertise to develop differentiated insights and add value for our fund investors, portfolio companies, management teams, and communities.
About Crowe LLP
Crowe LLP is a public accounting, consulting and technology firm with offices around the world. Crowe uses its deep industry expertise to provide audit services to public and private entities. The firm and its subsidiaries also help clients make smart decisions that lead to lasting value with its tax, advisory and consulting services, helping businesses uncover hidden opportunities in the market – no matter what challenges the markets present. Crowe is recognized by many organizations as one of the best places to work in the U.S. As an independent member of Crowe Global, one of the largest global accounting networks in the world, Crowe serves clients worldwide. The network consists of more than 200 independent accounting and advisory services firms in more than 130 countries around the world.