UpHealth Inc. is one step closer to becoming a dedicated behavioral health company with the sale of a technology asset for $180 million.

On March 15, the Delray Beach, Florida-based company completed the sale of its medical translation entity, Cloudbreak Health, to Chicago-based private equity firm GTCR LLC. Cloudbreak is headquartered in Columbus, Ohio.

“This transaction is one more critical milestone in the last three years of UpHealth, Inc.’s journey to focus the company on its strategic core and most profitable businesses,” Dr. Avi Katz, board chairman and founder of GigCapital Global, said in a statement. “Moving forward, we will focus solely on the very important purposed behavioral health business as we enhance investments in the profitable TTC Healthcare operation.”

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The company announced the deal in November 2023. It also operates a virtual care infrastructure division.

The $180 million will pay down the company’s debt. UpHealth sold its pharmacy division to Belmar Pharma Solutions for roughly $56 million. Deleveraging the business helps stabilize the company and enable its focus on TTC Healthcare, UpHealth CEO Martin Beck said in a statement.

“TTC is a profitable and cash-generating behavioral health business with an incredibly bright future and we look forward to working with our talented team to profitably scale and deliver high-quality care to more patients,” Beck said.

TTC Healthcare is a brand affiliated with the UpHealth Behavioral division, which operates four facilities in Florida. According to the UpHealth website, the company presently operates Transformations Treatment Center in Delray Beach, Transformations Mending Fences in Morriston, Olympus Recovery in Delray Beach and Summit Detox in Boynton Beach.

Source: BH Business

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