Outcome Health, the once-promising Chicago startup that was accused of fraud by its investors, has sold a majority stake of its business to a private equity firm.
Outcome announced Thursday that middle-market private equity firm Littlejohn is acquiring a majority stake in the company. The investment will be used to "fund its long-term strategic plan," and it "positions Outcome Health for continued leadership and growth in point of care," according to a news release.
Terms of the deal were not disclosed.
The sale is the latest turn in the bounce-back attempt for Outcome, which in 2017 was positioned to be one of Chicago's biggest tech success stories in years. It raised nearly $500 million from investors including Goldman Sachs, the Pritzker Group and Alphabet, which valued the company at more than $5 billion. But a few months later, a Wall Street Journal story found that Outcome misled advertisers on the number of ads that were actually being delivered on its digital doctors office wallboards.
Those same Outcome investors then sued Outcome for fraud. The lawsuit was settled in January 2018, resulting in the company's founders Rishi Shah and Shradha Agarwal stepping down from the company.
In June of last year, Outcome hired Matt McNally, a former Publicis executive, to be its CEO.
"This is a tremendous result and we are elated by the support from both existing and new investors who believe in our unique ability to innovate and transform point of care," McNally said in a statement. "Looking ahead, we will be better able to execute on our strategy, invest in our future growth and drive value for all our stakeholders."
