Company Overview

Leading provider of value-based analytics software that enables providers to identify irrational variations in physician behavior and implement plans to address the shift from volume- to value-based reimbursement.

Online provider of analytics, assessments and learning for the healthcare market. Portfolio company of Bertelsmann Education Group.

Situational Overview

The shift to value-based reimbursement is putting hospitals under intense clinical and financial pressure to provide better and more cost-effective patient care.

WhiteCloud was formed in 2009 to build an analytics platform that could drive changes in physician behavior to improve the quality and lower the cost of patient care.

In 2011, WhiteCloud partnered with a forward thinking large local health system to implement and embrace its platform, which generated over $47 million in cost savings, representing over 3.0x ROI over 7 years.

With a commercially viable product that was beginning to experience increased demand, WhiteCloud wanted to find a growth equity partner but ultimately decided a sale of the Company better fit shareholders’ goals.

BCA Strategy

Design a highly targeted, sell-side process that focused predominantly on strategic buyers with significant marketing and sales channel organizations seeking to add groundbreaking new software solutions like WhiteCloud’s.

Performed extensive case study analytics to illustrate WhiteCloud’s proven, hard-dollar ROI and significant total addressable market opportunity.

Positioned the Company as a unique opportunity to acquire best-of-class, mission critical software in this newly emerging and large market.

Transaction Result

WhiteCloud was sold to Relias Learning, who was looking to aggressively expand into the healthcare space and marry its learning and assessment tools with targeted analytics.

Relias submitted a pre-emptive bid that provided shareholders with 100% liquidity at an attractive valuation that was ~15% above BCA’s initial estimates and provided an opportunity to earn another 10% in consideration through performance incentives.

Sale-side Advisory to

“Brentwood Capital played a major role in creating the marketing materials and structuring, negotiating and closing a transaction that exceeded shareholders’ expectations. BCA’s strong industry relationships and healthcare technology expertise generated a process that yielded the best outcome for shareholders.”

- Bob Lokken, CEO
WhiteCloud Analytics