Thoma Bravo Announces Strategic Growth Investment in Bluesight to Support the Company’s Acquisition of Medacist
Combination Creates Leading Hospital Pharmacy Software Platform
ALEXANDRIA, Va. and CHESHIRE, Conn. and SAN FRANCISCO, Calif.—Thoma Bravo, a leading software investment firm, today announced the closing of a strategic growth investment in Bluesight, the Medication Intelligence™ Company. The investment is expected to further enhance Bluesight’s drug diversion prevention offerings through its acquisition of Medacist, a pioneer in drug diversion monitoring, and continue to grow Bluesight’s inventory management and spend optimization offerings. Current investor New Leaf Ventures will remain invested in the business. Financial terms of the transaction were not disclosed.
Bluesight’s vision is to transform the hospital pharmacy supply chain through software. Today, the company supports health systems with automated RFID-enabled kit and tray management through KitCheck™, controlled substance diversion management through ControlCheck™ and drug purchasing optimization through CostCheck™. Additional resources from Thoma Bravo will help accelerate the realization of Bluesight’s vision and are expected to significantly benefit its customers.
Bluesight’s acquisition of Medacist combines two innovators in drug diversion analytics and medication management solutions that together will serve more than 2,000 hospitals across North America. Bluesight’s advanced auditing capabilities and visibility across all hospital care areas complements Medacist’s streamlined reporting and visibility tools across the health system. Healthcare organizations will have a single source of software solutions that provides insights into medication usage and diversion to allow for the most accurate predictions, targeted interventions and, ultimately, improved patient outcomes.
Kevin MacDonald, Co-Founder and CEO of Bluesight, will lead the combined organization.
“Technological advancements, including artificial intelligence, are digitizing healthcare and driving demand for software innovations in medication management. Health system pharmacies are looking for solutions that lower costs, increase efficiency, and improve compliance,” said Kevin MacDonald. “Partnering with Thoma Bravo enables us to increase our investment in Medication Intelligence™ and serve our health system customers more completely across the drug lifecycle. Joining forces with Medacist allows us to better support healthcare organizations in their effort to identify and prevent acts of drug diversion and creates a leading software platform providing seamless, secure and efficient medication surveillance and predictive analytics solutions.”
David Brzozowski, Sr., President & CEO of Medacist, commented: “More than 25 years ago, we embarked on a mission to revolutionize healthcare with a new approach to identifying and preventing drug diversion. Since its inception, Medacist has been a trailblazer, helping to identify potential cases of drug diversion across thousands of healthcare organizations. Medacist is thrilled to partner with Bluesight and Thoma Bravo to accelerate our impact.”
“The combination of Bluesight and Medacist capitalizes on the growing demand for software solutions that transform how health system pharmacies manage medication inventory and compliance,” said Carl Press, a Partner at Thoma Bravo. “In particular, drug diversion costs the healthcare system billions of dollars each year and presents a significant challenge that can only be addressed with deep industry knowledge and advanced technical capabilities, including machine learning. We believe the combined company is uniquely positioned to tackle this challenge and others, and we are thrilled to partner with Kevin and team to accelerate innovation and growth at Bluesight.”
“With increased scale and enhanced capabilities, Bluesight and Medacist will have a differentiated market position within this critically important segment of the healthcare market,” said Sam Yules, a Vice President at Thoma Bravo. “We are excited to work with both of these organizations on the next phase of their growth journey.”
Piper Sandler & Co. served as financial advisor to Bluesight and Taft, Stettinius and Hollister LLP served as legal counsel. Provident Healthcare Partners served as financial advisor to Medacist and Robinson & Cole LLP served legal counsel. Kirkland & Ellis LLP served as legal counsel for Thoma Bravo. Committed financing for the transaction was led by Monroe Capital LLC.
About Thoma Bravo
Thoma Bravo is one of the largest software investors in the world, with more than US$127 billion in assets under management as of March 31, 2023. Through its private equity, growth equity and credit strategies, the firm invests in growth-oriented, innovative companies operating in the software and technology sectors. Leveraging Thoma Bravo’s deep sector expertise and strategic and operational capabilities, the firm collaborates with its portfolio companies to implement operating best practices and drive growth initiatives. Over the past 20 years, the firm has acquired or invested in more than 440 companies representing over US$250 billion in enterprise value*. The firm has offices in Chicago, London, Miami, New York and San Francisco.
*including control and non-control investments
Bluesight solves supply chain inefficiencies and reduces risk by using AI and machine learning to surface actionable analytics for every step of the medication lifecycle. Through our suite of Medication Intelligence™ solutions, Bluesight brings simplicity, visibility, and predictability to the complex world of medication management. More than 1,000 U.S. and Canadian hospitals utilize Bluesight solutions to optimize their hospital’s pharmacy practices by improving efficiency, reducing medication costs, and increasing compliance and safety.
Medacist is a pioneer and leading innovator in drug diversion analytics. The company applies artificial intelligence (AI), machine learning and data analytics to clients’ data in order to pinpoint unusual patterns throughout the lifecycle of drugs—from procurement to storage and management in a clinical pharmacy, to prescription and dispensation by doctors and nurses, to administration to the patient. Thousands of hospitals across the U.S. have relied on Medacist’s RxAuditor analytics suite to ensure regulatory compliance, reduce liability, and ensure patient safety.