Office Ally Welcomes New Mountain as Key Stakeholder in $1.8bn Deal

New Mountain Capital has acquired a significant stake in healthcare software provider Office Ally from Francisco Partners for around $1.8 billion, marking a notable exit for Francisco Partners. Both firms will now share control of Office Ally. This deal, confirmed on Monday, is part of a broader trend where private equity groups are conducting sponsor-to-sponsor sales to manage long-held investments and inject capital into newer funds. Office Ally, founded in 2000, is a healthcare claims processing service with extensive operations in the United States, having processed over $250bn in claims over its history. This transaction is among other recent private equity moves, which includes Insight Partners' sale of Dotmatics to Siemens AG for $5.1 billion and Brookfield's purchase of Antylia Scientific for $1.4 billion. Francisco Partners remains active in the technology investment space, having recently engaged in a $2.4 billion deal involving energy software company Quorum. Despite the overall slowdown in M&A activities at the beginning of 2023, private equity exit deals have seen a rise, with 406 exits worth $194.1 billion recorded in Q1 2023 compared to 332 exits valued at $88.2 billion in the same period last year.