W2O Partners with New Mountain Capital to Accelerate Digital Marketing and Communications Services for Healthcare Providers

Recently, VCBeat (WeChat Official Account: vcbeat) learned from foreign media reports that leading healthcare services company W2O has announced a partnership with New Mountain Capital to accelerate its growth and meet customers’ increasing demand for efficient communication services amid the industry’s ongoing digitalization and mobilization.

The cooperation agreement states that the current W2O management team will remain unchanged, with W2O Founder and CEO Jim Weiss and W2O President Jennifer Gottlieb continuing to serve as board members. The transaction is expected to close in the first half of fiscal year 2019, subject to customary approvals and closing conditions. CG Petsky Prunier of Canaccord Genuity Group and Houlihan Lokey jointly served as financial advisors for this collaboration between W2O and Mountaingate Capital. Specific financial terms of the deal were not disclosed. Meanwhile, Mountaingate Capital, W2O’s investment partner at this stage, is terminating its partnership with W2O.

W2O was founded by Jim Weiss in 2001 and operates 15 offices across the United States and select European countries. The company is dedicated to providing data-driven digital marketing and communication services to the healthcare industry, leveraging its proprietary digital analytics models to design precise communication and marketing strategies for its clients.

In 2016, W2O partnered with Mountaingate to execute its strategic growth plan. During the collaboration, W2O completed the acquisitions of Pure Communications, Marketeching, and Sentient. Additionally, Mountaingate assisted W2O in recruiting key talent and making targeted investments to enhance and expand W2O’s highly integrated technology and service offerings. Throughout the partnership with Mountaingate, W2O’s annual revenue more than doubled, rising from just under $100 million in 2016 (when the company had over 400 employees) to a projected exceedance of $200 million in 2019 (with nearly 800 employees).

Weiss, founder of W2O, stated, “We have achieved a five-year plan within the past three years. The company is seeking new partners to help sustain our current strong growth momentum while preserving our vibrant corporate culture, providing our employees with opportunities for innovation, learning, and continuous professional development. New Mountain is the right choice at this pivotal point in our development. Given the healthcare industry’s unprecedented reliance on technology, this turning point will also impact the healthcare sector. Through our partnership with New Mountain, we will continue to recruit talent, acquire companies, and drive expansion in key overseas and U.S. markets to meet customer demands.”

Gottlieb stated, “This partnership enables us to take full control of our company’s destiny, deliver optimal services to our clients, and make the world a healthier place through marketing communications. Nothing is more important than health. The future leaders in the healthcare industry will be those capable of effectively communicating and competing across both traditional and non-traditional media channels—leveraging advanced analytics—within the mobile and digital landscapes. We will not only continue to build our business by helping clients achieve efficient communication and enhance their competitiveness, but we will also become a key player in the digital health sector.”

Matt Holt, Managing Director at New Mountain Capital, stated, “W2O is a leader in healthcare marketing, communications, and analytics. We are excited to partner with Jim and his exceptional team. Emerging forces are reshaping the medical, preventive, and therapeutic landscapes of the healthcare industry, and W2O is well-positioned to capitalize on this trend.”

Bruce Rogers, Managing Director at Mountaingate Capital, stated: “W2O and its team have adopted a development strategy centered on acquiring companies and recruiting talent. By leveraging data-driven insights to inform clients’ strategic deployments, they help achieve competitive advantages. Upholding a client-first philosophy, W2O is committed to providing employees with positive experiences and growth opportunities, thereby optimizing the healthcare ecosystem.”

Mountaingate Capital is a Denver-based private equity firm focused on building and supporting companies with strong growth potential. The company emphasizes organic growth, client-centric acquisition and company-building activities, and an investment strategy that involves sharing equity with the management teams of its portfolio companies. This approach creates greater value for clients while fostering stronger investment partnerships with management. Mountaingate’s typical investment size ranges from $5 million to $25 million (pre-tax).

New Mountain Capital is a New York-based investment firm that pursues long-term capital appreciation while focusing on business building and growth for its portfolio companies. The firm currently manages over $20 billion in private equity, public equity, and credit funds.

(Compiled by Tang Lulu)