Firms & Funds

GTCR commits up to $400 mln to RevSpring deal

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GTCR, Aaron Cohen, RevSpring, private equity, mergers, M&A
Photo of Aaron Cohen of GTCR courtesy of the firm.
  • Exec expects up to two add-on deals in the next year
  • Firm earmarks $400 mln equity for the platform plus add-ons
  • RevSpring to widen reach in payments space

A GTCR executive said the firm already expected as many as two add-on deals in the next year after its buyout of payment specialist RevSpring.

Aaron Cohen, managing director at GTCR, said the firm is tapping “three of its strongest domains” in acquiring RevSpring because the company fits into its core skillset of financial services, technology and healthcare.

“Don’t think of this as a typical recurring-bill-payment business,” he said. “The company specializes in esoteric, one-off payments, and complex bills. … It helps customers improve their collections with data analytics.”

GTCR has committed as much as $400 million of equity to the overall RevSpring platform. The majority of that dollar figure represents uncommitted capital for future add-on deals, according to a source.

Cohen declined to comment on the financial specifics of the deal, but said the firm expects to invest to widen its business in the broader vertical payments space.

RevSpring provides physical and electronic invoices, consumer payment portals, and analytics to validate and improve engagement with customers.

Based in Wixom, Michigan, RevSpring works with about 2,000 health systems and hospitals, revenue cycle management providers and financial services organizations.

RevSpring was formed by the merger of PSC and Dantom in 2012.

Action Item: Contact GTCR: http://www.gtcr.com/contact/

Photo of Aaron Cohen courtesy of GTCR