CentralReach Explores Potential Sale, Valuation Could Exceed $1 Billion
CentralReach, a leading provider of electronic health records software for autism care, is reportedly exploring a potential sale. The Fort Lauderdale-based company has engaged investment bank William Blair to assist in the process, with industry insiders suggesting the company could seek a valuation exceeding $1 billion.
Founded in 2012, CentralReach has established itself as a market leader in autism care software, offering AI-powered tools to streamline clinical tasks such as reviewing notes. The company’s technology is currently utilized by over 175,000 healthcare professionals worldwide.
While CentralReach has remained discreet about its financials, sources familiar with the matter report that the company generates approximately $75 million in earnings before deductions. Since 2018, CentralReach has been backed by venture and private equity firm Insight Partners.
The potential sale aligns with a broader trend in the healthcare industry, as companies seek buyers following a slow year for mergers and acquisitions. Profitable healthcare companies with stable revenue streams are particularly attractive to private equity buyers in the current market climate.
This move comes on the heels of recent industry activity, including the sale of a majority stake in ModMed, another medical practice tech company, to Clearlake Capital for a valuation of $5.3 billion. CentralReach itself has been active in the acquisition space, completing 14 acquisitions over its 13-year history. The company’s most recent acquisition was Behavior Science Technology, a platform for measuring autism therapy efficacy, in September.
As the sale process unfolds, industry observers will be closely watching to see how CentralReach’s valuation compares to recent deals in the healthcare technology sector.
