Warburg Pincus Acquires Majority Stake in WebPT to Drive Innovation in Rehabilitation Therapy Solutions

On August 27, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media that private equity firm Warburg Pincus has acquired a majority stake in WebPT, an electronic medical record (EMR) system developer, from Battery Ventures. Aeris Partners served as the financial advisor for this transaction. Other details of the deal have not been disclosed.

This investment, combined with Warburg Pincus’s expertise in healthcare and technology, will help WebPT innovate its product suite and advance its mission of empowering therapists to achieve excellence in practice.

Upon completion of the transaction, Dr. Heidi Jannenga, co-founder of WebPT, will serve as Chief Clinical Officer while retaining her ownership stake. She will also continue to advise on the company’s strategic direction and product innovation, while promoting rehabilitative therapy on a global scale.

Heidi Jannenga stated in a press release, “WebPT is dedicated to empowering physical therapists, occupational therapists, and speech-language pathologists, advocating for the rightful place of rehabilitative care within the healthcare system. We are honored to enter into a strategic partnership with Warburg Pincus, which will provide us with the tools and resources necessary for growth. By helping rehabilitation professionals expand their scope of practice, we can enable millions of people to benefit from musculoskeletal care, thereby influencing the entire healthcare industry.”

Projections indicate that the $35 billion rehabilitation therapy market will expand significantly in the coming years, driven by an aging patient population and consumers’ growing preference for treatment regimens that minimize opioid use.

WebPT noted that a report from the American Academy of Orthopaedic Surgeons indicates that nearly 127 million Americans (one in two adults) are affected by musculoskeletal conditions. The annual costs for treatment, care, and lost wages amount to approximately $213 billion.

TJ Carella, Managing Director at Warburg Pincus, stated, “WebPT is a premier physical therapy platform. Given the shift in the physical therapy market toward value-based care, WebPT is at a critical strategic inflection point.”

“Rehabilitation therapy can significantly improve patients’ health outcomes and substantially reduce costs for both patients and healthcare providers,” said Nancy Ham, CEO of WebPT. “However, approximately 90% of individuals who could benefit from rehabilitation therapy do not receive it. Our goal is to change this reality. Warburg Pincus is well-positioned to help us scale our operations, thereby enabling us to serve more people and ultimately transform the entire healthcare industry.”

WebPT is an information technology company founded in 2008 that provides web-based electronic medical record (EMR) systems for physical therapists. In addition to patient documentation software, WebPT offers billing, scheduling, and practice management solutions. As of February 2015, the WebPT system was used by more than 40,000 rehabilitation professionals across over 7,000 clinics. Headquartered in Phoenix, Arizona, USA, the company has ranked among the 5,000 fastest-growing companies in the United States for four consecutive years.

Warburg Pincus is a U.S.-based private equity firm with offices in the United States, Europe, Brazil, China, and India. The firm currently manages over $65 billion in private equity assets and has invested in more than 185 companies. Since its founding in 1966, Warburg Pincus has cumulatively invested over $77 billion in more than 870 companies across over 40 countries worldwide. The firm entered the Chinese market in 1994 and is one of the earliest international private equity investors to come to China, as well as one of the largest in terms of investment scale. Since entering the Chinese market, Warburg Pincus has invested in more than 100 leading enterprises across various industries in China. The firm currently holds investments in more than 50 Chinese companies, including ZTO Express, Ant Financial, CAR Inc., UCAR, Huabao Trust, Kidswant, Amcare, Weidian, Mofang Living Services Group, Liepin, Uxin, NIO, Shengxu Investment, and Dasouche.