Clearlake Capital has agreed to acquire a majority stake of ModMed, an innovator in cloud-based electronic health records technology as well as a pioneer of South Florida’s tech ecosystem. The financial terms of the deal – at a $5.3 billion valuation – were not disclosed. Clearlake will purchase the stake from Warburg Pincus, which acquired a majority share of ModMed in 2017.
Founded in 2010 by serial entrepreneur Dan Cane alongside Dr. Michael Sherling, ModMed (formerly known as Modernizing Medicine) develops AI-powered medical practice technology to support the unique needs of providers and their staff in multiple specialties, including orthopedics, ophthalmology, dermatology, plastic surgery and others. The Boca Raton-based company offers a suite of solutions, including EHRs, practice management, revenue cycle management, patient engagement, payment processing, and native AI integrations, all working together to enable more efficient medical practices.
“For fifteen years, ModMed has operated with a clear and consistent mission: to place doctors and patients at the center of care through an intelligent, specialty-specific cloud platform. Since then, we have remained steadfast in our dedication to innovation and improving providers’ lives. Our journey with Warburg Pincus enabled us to scale and achieve significant milestones, and we look forward to our next chapter of growth with Clearlake and continuing to leverage technology to transform the patient-provider experience,” said Co-CEO Cane, in a news release.
The decision to go with Clearlake was driven by their ‘impressive” track record of investing behind software and healthcare technology platforms, as well as their commitment to ModMed’s core mission, said Joe Harpaz, who was appointed co-CEO in 2024, alongside Cane.
“As we look at the investments we are making in our existing products, our robust AI roadmap, and in delivering unmatched customer experiences, we are confident that this partnership will strengthen our ability to deliver impactful solutions and maintain our position as a trusted technology partner for our customers,” Harpaz said.
Reuters reported several months ago that Warburg Pincus was exploring such a sale.
Clearlake’s Behdad Eghbali, co-Founder and managing partner, Prashant Mehrotra, partner, and Paul Huber, managing director said in a statement: “The ModMed team has built a special company with a differentiated and comprehensive suite of mission-critical, cloud-native SaaS products. Its deep commitment to developing innovative technology has solidified the Company’s position as a leading provider of ambulatory healthcare software, resulting in resilient demand and sustainable outsized growth across medical specialties. We believe long-term trends in healthcare favor software providers focused on innovation and efficiency, and we are excited about ModMed’s advancements in AI-enabled technology that simplifies documentation and streamlines workflows.”
Clearlake, based in Santa Monica, Calif., has over $90 billion of assets under management, has led or co-led over 400 investments, and has deployed over $57 billion in liquid and illiquid credit investments globally.
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