Leonard Green & Partners and Francisco Partners Join Forces to Drive the Next Chapter of Growth at RedSail Technologies

By: Francisco Partners via Business Wire

June 13, 2024 at 09:00 AM EDT

Additional investment to accelerate RedSail’s strategic initiatives, product development and growth opportunities.

RedSail Technologies, a premier provider of pharmacy technology and solutions, announced a strategic growth investment from Leonard Green & Partners (LGP). As part of the transaction, Francisco Partners (FP), which created RedSail by combining two separate divisional carve-outs in 2020, will also reinvest in the company alongside management.

This investment will help advance RedSail’s mission of elevating the role of pharmacy and health of its communities by building the most clinically advanced and financially sustainable pharmacy network. With over 12,000 pharmacy locations today, the company’s comprehensive platform combines best-in-class pharmacy management software, robust proprietary pharmacy network switch capabilities, and a suite of data services that together provide financial and clinical benefits to customers across the pharmacy stakeholder ecosystem.

“Throughout our partnership with Francisco Partners, RedSail has successfully expanded growth initiatives, delivered product innovation, and strengthened our customer and partner relationships,” said Kraig McEwen, RedSail CEO. “We have only increased our capabilities with the addition of LGP, a top tier growth-focused and management-first investor. With the support of FP and LGP, we plan to further accelerate our product roadmap, significantly expand our customer base, and materially enhance our offering across the pharmacy ecosystem and the broader healthcare landscape.”

Pete Zippelius and Jeff Suer at LGP said, “RedSail is transforming the pharmacy industry through a robust end-to-end platform offering innovative solutions. RedSail is well-positioned to capitalize on and further enable the trends toward elevating the role of pharmacists, and we believe the company will continue to benefit from its growing data network and Axys, the industry’s first and only cloud-native, next-generation pharmacy management software. We’re excited to partner with the RedSail and FP teams.”

Chris Adams, Partner at Francisco Partners, said, “We are proud of our partnership with RedSail over the past four years. The team has built an exceptional company with a differentiated culture and incredible track record of supporting their customers. We look forward to backing the company’s next stage of growth with the RedSail team and our new partners at LGP.”

The transaction is subject to customary regulatory approvals. TripleTree and William Blair served as financial advisors and Kirkland & Ellis LLP served as legal counsel to RedSail Technologies and Francisco Partners; Baird acted as financial advisor and Latham & Watkins LLP served as legal counsel to LGP.

About RedSail

RedSail Technologies, a trusted innovator in pharmacy software, is transforming patient care. Empowering over 12,000 pharmacies serving more than 8 million patients monthly, RedSail has deep experience with the needs and concerns of pharmacy across sectors – community, long-term care, outpatient, clinic, HME/DME, and specialty pharmacies – and their pharma, payer, and strategic industry partners.

Knowing the heart of pharmacy is the desire to provide meaningful patient care, RedSail makes daily pharmacy operations more seamless through advanced pharmacy management systems, transactional and medical billing services, and patient engagement solutions. Our leading brands, including PioneerRx®, groundbreaking Axys® long-term care pharmacy software, PowerLine®, TransactRx®, and QS/1®, provide the efficiency and industry integration that liberate pharmacists to focus on patients.

About Leonard Green & Partners

LGP is a leading private equity investment firm founded in 1989 and based in Los Angeles with approximately $75 billion of assets under management. The firm partners with experienced management teams and often with founders to invest in market-leading companies. Since inception, LGP has invested in over 120 companies in the form of traditional buyouts, going-private transactions, recapitalizations, growth equity, and selective public equity and debt positions. The firm primarily focuses on companies providing services, including consumer, healthcare, and business services, as well as distribution and industrials. For more information, please visit www.leonardgreen.com.

About Francisco Partners

Francisco Partners is a leading global investment firm that specializes in partnering with technology and technology-enabled businesses. Since its launch 25 years ago, Francisco Partners has invested in more than 450 technology companies, making it one of the most active and longstanding investors in the technology industry. With approximately $45 billion in capital raised, the firm invests in opportunities where its deep sectoral knowledge and operational expertise can help companies realize their full potential. For more information on Francisco Partners, please visit www.franciscopartners.com.