GTCR has kicked off the sale of Cedar Gate Technologies, its healthcare technology portfolio company, in a move that could fetch a valuation north of $1bn including debt, according to sources familiar with the process.

The Chicago-based private equity firm is working with advisers to market the Greenwich, Connecticut-based business, which serves more than 60 million insured Americans through its healthcare analytics and payment platform. Final bids are expected in the coming month, though a full sale is not guaranteed. GTCR may also consider retaining the business or selling a partial stake depending on buyer interest and market conditions.

Cedar Gate’s technology enables clients to process tens of thousands of data points, offering patient analytics, population health insights, and payment solutions. The platform’s strategic positioning across the healthcare value chain is expected to attract interest from both strategic acquirers and rival financial sponsors.

The potential sale comes amid a string of high-profile exits for GTCR, which earlier this month agreed to sell its 55% stake in Worldpay to Global Payments in a deal valuing the payments giant at $24.2bn—securing a two-fold return in under two years. GTCR also recently struck a deal to sell a stake in hedge fund services provider Ultimus Fund Solutions to Stone Point Capital at a valuation approaching $2bn.

While broader private equity deal activity remains subdued due to debt market challenges and delayed US interest rate cuts, GTCR has demonstrated an ability to capitalise on strong market segments and deliver premium exits.

GTCR manages $45bn in assets across healthcare, financial services, and technology sectors. A successful sale of Cedar Gate would further solidify the firm’s standout year in a turbulent M&A environment.

Source: Financial Times