Nashville health-tech firms continue to rack up huge investments in 2021, and the latest comes with a deal to buy an Atlanta company.
Franklin-based Relatient Inc. has agreed to purchase patient scheduling firm Radix Health, according to a news release. Terms of the deal were not disclosed.
In addition to the deal, Relatient has raised a $100 million round of funding from existing investor Greenwich, Connecticut-based Brighton Park Capital, according to the release, which became Relatient’s majority owner in 2019.
Middle Tennessee health care startups have been awash in cash this year, with several high-dollar rounds of funding hitting Nashville-area firms’ bank accounts. In June, data analytics company Xsolis (stylized XSOLIS) secured a $75 million investment, also from Brighton Park Capital. That was preceded weeks earlier by a $160 million capital raise by Monogram Health, which was led by private equity firm TPG Capital.
Brighton Park’s investment in Relatient would have been the third-largest capital raise in Middle Tennessee in 2020, according to Nashville Business Journal research, behind solar energy firm Silicon Ranch and Quincy Health. The investment would have taken the crown for the largest raise in the region during 2019, beating out Silicon Ranch by $40 million.
Founded in 2014, Relatient provides patient and provider messaging services, allows patients to book appointments online and sends billing and appointment reminders to patients. The product ties into a provider’s existing electronic medical record and is used by small practices and large health systems alike.
Relatient will add Radix’s machine learning, patient-provider matching, schedule optimization, referral tools and patient self-service capabilities to its existing platform, according to the release.
The deal, which is expected to close in August, will give Relatient offices in Franklin, Cookeville, Atlanta and Pune, India. It will also add 100 employees to Relatient's current headcount of 124.
“Radix Health has built an innovative product and strong customer base, far beyond what else we have seen in the market for patient access and schedule optimization,” Relatient CEO Michele Perry said in the release. “Together, we have a robust platform solution for a market looking to move beyond first-generation patient communication systems to drive greater value through interactions and ease of access to health care.”
The transactions come nearly two years after Brighton Park bought a majority stake in Relatient. Terms of that deal were not disclosed.
At the time, Relatient had been on a growth spree since Perry was hired as CEO in November 2017. The company had surpassed $10 million in revenue for the first time and more than doubled the size of its staff, from 45 in 2017 to 119 less than two years later.
“As a physician, I know how much the individual patient-provider relationship matters, and it’s at the very core of Relatient,” Radix CEO Dr. Arun Mohan said in the release. “With Relatient we are confident that we will not only make it easier for patients to see their providers by expanding lines of communication between patients and caregivers, ultimately taking their care delivery to the next level.”
