Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

The lobby of PointClickCare in Mississauga, Ont., on Dec. 19, 2019.

Tijana Martin/The Globe and Mail

U.S.-based growth equity firm JMI Equity has sold most of its position in PointClickCare Technologies Inc. as part of a US$600-million-plus recapitalization transaction that values the Mississauga health care records software company at about US$4-billion.

The deal saw JMI’s seventh fund, plus some long-time individual investors in PointClickCare and company employees, sell between US$600-million and US$800-million of stock of privately held PointClickCare, two sources familiar with the company told The Globe and Mail. JMI owned the majority of stock sold in the recapitalization but will remain a shareholder.

The Globe is not identifying the sources because they are not authorized to speak publicly on the matter. PointClickCare did not release financial details about the deal.

Story continues below advertisement

The buyers are existing shareholder Dragoneer Investment Group – PointClickCare’s largest institutional investor – and new private equity investor Hellman & Friedman LLC of San Francisco, which is picking up a 10-per-cent stake. H&F partner Sameer Narang is joining PointClickCare’s board, as JMI general partner Matt Emery exits.

The deal comes one month after PointClickCare, one of Canada’s largest private software companies with close to US$400-million in revenue in its past fiscal year, made its largest acquisition to date. It bought Salt Lake City’s Collective Medical for more than US$500-million, one of a recent slew of sizeable cross-border deals involving Canadian technology companies – sometimes as buyers and sometimes as sellers.

It also represented a strategic move by PointClickCare to expand beyond its core business of offering internet-based health care records software to 21,000 nursing homes, retirement facilities and home health agencies. Collective’s software platform tracks 80 million patients at thousands of hospitals, ambulatory practices and long-term postacute care providers, plus other care organization and national health plans across 39 U.S. states. With Collective, PointClickCare can now provide integrated care co-ordination for senior citizens with health issues, positioning it well for “the silver tsunami” of aging baby boomers entering their final years, chief executive Mike Wessinger said last month.

JMI originally invested US$50-million in PointClickCare in 2011 and it’s believed it will end up making about a 15-times return on its total investment over the years, excluding its remaining stake. It is typical for private equity firms to only hold investments for finite periods, before cashing out to realize returns for their investors.

Mr. Emery declined to comment on the financial specifics of the deal but said, “We’re thrilled with the performance driven by the founders and team at PointClickCare over the last 10 years. it’s been one of JMI’s most successful investments. We look forward to continuing to be a shareholder for its next phase of growth.”

PointClickCare had hired UBS Investment Bank and law firm Goodwin Procter LLP to handle the recapitalization, which Mr. Wessinger said met with “really strong demand. There was no shortage of [potential] investors.”

He said H&F emerged as the winning buyer in part because it has done transactions with JMI in the past and JMI “really felt that H&F would be a great partner to us … and bring a lot of value. Rather than trying to get the very last nickel from running a hyper-competitive process they asked us if we would work with H&F. I got to know them, and we thought they would be a great partner just like JMI has been.”

Story continues below advertisement

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies