PracticeTek is a Knoxville-based investment firm that targets software companies in the healthcare industry. It has acquired Beaverton-based healthcare software startup GrowthPlug.
Sudhir Bhatti and Shavita Batti will continue to lead the startup. The company will continue to employ its 50-member team, which is based in India and the U.S. after the deal closes. The terms of the deal are not known.
GrowthPlug was founded in 2016 and aims to assist healthcare providers with acquiring, retaining, and serving patients. It automates various office management systems. It is used by dentists, vets, and spa professionals, among other things. In an effort to expand its tech talent, the company moved its headquarters to Portland.
This deal is coming at a time of a slowdown for startup exit activity in broader markets. GrowthPlug is the 20th startup based on the Pacific NorthWest that has been acquired in 2022. This compares to 60 startups for the entire 2021 period. Economic pitch M&A and IPO lists show that this deal will only be the 20th. The startup raised 1 million from Elevate Capital in 2019. It will cash out its position after the transaction.
Many startups are focusing on healthcare-focused software. BirchAI was a spinout of the Allen Institute for Artificial Intelligence. In January, raised $3,1 million in seed financing for its software, which streamlines customer support for healthcare businesses. Telehealth startup 98point6 signed a deal to license its virtual care delivery platform with Tacoma’s MultiCare Health System.
“Independent healthcare practices are more focused on growing their patients as well as having an unified online presence,” Eric Leaver , CEO of PracticeTek, said in a statement. GrowthPlug is a market leader and well-positioned to capitalise on the wave of digitization.
This acquisition will increase the number of PracticeTek’s healthcare software companies. According to the company, these investments provide founders with personal wealth that allows them to grow and run their businesses as well as collaborate with other entrepreneurs in their field. Investors Lightyear Capital as well as Greater Sum Ventures are backing the venture.