Case Study

Verge Health's Acquisition by RLDatix Creates Largest Safety-Led Compliance and Credentialing Healthcare Software Platform

December 2020
Transaction Background and Thesis


Verge Health (Verge) was an innovative company in the Governance, Risk and Compliance (GRC) healthcare software market, providing software and services offerings in the domain of compliance & risk management, patient safety, and credentialing. The Company was founder-owned, bringing in TT Capital Partners (TTCP) as its first institutional investor in 2015. Building on TTCP’s knowledge and experience in healthcare compliance, TTCP believed the healthcare GRC industry was on the front-end of a significant opportunity. TTCP had conviction that there was a clear opportunity with Verge to create value by utilizing the company's strong brand to deepen the commercial relationships with existing hospital customers, establish new products while sunsetting others, and elevate the purchase decision to an enterprise sale. Throughout the life of the investment, TTCP worked with Verge to implement strategic and operational initiatives to maximize growth potential.


Value Creation
 
  • Recruited new leadership and strengthened sales, operations, and IT functions
  • Refined sales message and product positioning to increase c-suite relevance
  • Shifted product pricing to ROI focused model, driving ~5x increase in average selling price
  • Established high-growth health plan credentialing offering
  • Enabled c-suite access to TTCP’s hospital relationships
  • Negotiated acquisition of M&A tuck-under within predictive clinical analytics  

 
During our partnership, TTCP proved to be a value-add partner time and time again. TTCP’s domain knowledge of our market and ability to provide strategic guidance and assist when requested with operational optimization transformed Verge into both a category leader and a highly scalable company.
Results


TTCP helped Verge transition from a small administrative compliance company selling point solutions into an industry-recognized best-in-class enterprise GRC platform for healthcare, delivering a clear ROI to the c-suite. During TTCP’s partnership, Verge doubled the number of hospital customers and annual recurring revenues (ARR).

RLDatix, a Chicago-based global provider of intelligent patient safety solutions, acquired Verge in late 2020. Verge offered a strategic entry point into the credentialing market and access to Verge’s 950 hospital clients.
 
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