By Milana Vinn and Anirban Sen
NEW YORK (Reuters) - Private equity firm Warburg Pincus is weighing options, including a sale, for Modernizing Medicine (ModMed) that could value the medical software provider at more than $5 billion, including debt, according to people familiar with the matter.
Boca Raton, Florida-based ModMed is working with a financial adviser to solicit interest in the coming weeks from potential buyers, which include other private equity firms, the sources said, requesting anonymity as the discussions are confidential.
The deliberations are at an early stage, the sources said, cautioning that a deal is not guaranteed and Warburg Pincus could choose to retain its ownership of the company. ModMed could also opt to pursue other options, including the sale of a stake, one of the sources added.
Warburg Pincus, which first invested in ModMed in 2017, previously explored options for the company in 2022, before the talks fizzled out.
Warburg Pincus declined to comment. ModMed did not immediately respond to requests for comment.
Founded in 2010 by entrepreneur Daniel Cane and physician Michael Sherling, ModMed is a healthcare technology provider that primarily helps develop software and systems for the maintenance of electronic health records of patients. It also makes software that helps clinics replace outdated technology and automate routine tasks, such as payment processing.
Since its founding, ModMed has raised more than $332 million from investors and currently has over 1,200 employees, according to its website. Its solutions are used by more than 40,000 healthcare providers.
Warburg Pincus manages more than $86 billion of assets and has active investments in over 230 companies across several industries in its portfolio. The firm traces its roots to an investment banking firm called E.M. Warburg, which was founded in New York in 1939 by German American businessman Eric Warburg.