Riverside Sells Greenphire to Thoma Bravo

The Riverside Company has agreed to sell Greenphire, a provider of financial management software, to Thoma Bravo.

Greenphire’s software is used by pharmaceutical companies to manage clinical trials by streamlining financial management, payment and logistical workflows from sponsors and contract research organizations (CROs) to sites and patients. The company’s web-based products – sold under the EnvisiX, eClinicalGPS, ClinCard and ConneX brands – can be configured to meet the specific requirements of each clinical trial and improve operational efficiency, reduce costs, mitigate regulatory risks, and increase subject retention and compliance.

Customers of Greenphire include the majority of the top 30 pharmaceutical companies and top 10 CROs across more than 70 countries. Greenphire, led by CEO Jim Murphy, was founded in 2008 and is headquartered near Philadelphia in King of Prussia, Pennsylvania. The Riverside Company acquired Greenphire in December 2014.

“Our partnership with Greenphire has been incredibly fruitful,” said Loren Schlachet, a managing partner at Riverside. “During our seven-year partnership, we broadened the company’s product set, enhanced the sales and marketing organizations and expanded its international footprint.”

“We are very proud of the organic growth accomplished during our ownership period, including an 8x increase in revenue and 4x increase in employee count,” said Joe Manning, a senior partner at Riverside. “We’re thrilled with the team and product set that has been built and are confident that Greenphire is well-positioned for continued success.”

In addition to Mr. Schlachet and Mr. Manning, the Riverside transaction team included Operating Partner Keith Kerman, Senior Associate Sara Mostatabi and Finance Director Gary Schlegel.

“Through our partnership with Riverside, we have been able to expand the organization and focus on strategic innovation, setting us up for success in our next chapter of growth,” said Mr. Murphy who will continue to lead Greenphire in partnership with Thoma Bravo. “Our acquisition by Thoma Bravo is further validation of our strategy and the unique value we provide our clients, particularly as pharmaceutical companies and CROs accelerate trends towards participant centricity in their clinical trials.”

“The COVID-19 pandemic has underscored the importance of clinical trial technology solutions which enable greater research site effectiveness and better participant support,” said Hudson Smith, a partner at Thoma Bravo. “Greenphire is well-positioned to expand its client base and continue to execute on its growth strategy.”

Thoma Bravo specializes in investing in application, infrastructure and security software and technology-enabled services businesses. The firm’s investments typically are in the form of take-private transactions, leveraged buyouts and growth equity investments in established companies that have or can quickly reach EBITDA of greater than $50 million. Over the past 20 years, the firm, with offices in Chicago, Miami and San Francisco, has acquired more than 300 software companies totaling over $85 billion in enterprise value.

In October 2020, Thoma Bravo closed three new funds with just under $23 billion in capital commitments including Thoma Bravo Fund XIV LP (large equity investments) with $18 billion of capital; Thoma Bravo Discover Fund III LP (middle-market investments) with $4 billion of capital; and Thoma Bravo Explore Fund LP (lower middle-market equity investments) with $1 billion of capital.

New York City-headquartered The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 750 transactions and its portfolio includes more than 120 companies.

Jefferies and AGC Partners are the financial advisors to Greenphire and William Blair is advising Thoma Bravo.

Private Equity Professional | May 28, 2021