Bain Capital Private Equity has acquired a majority stake in healthcare AI company LeanTaaS for an undisclosed price, the company announced Monday.
It bought a undisclosed majority stake from existing investors Insight Partners and Goldman Sachs Asset Management. The deal includes a capital commitment from Bain Capital. while Insight and Goldman Sachs will retain a minority stake in the Santa Clara, California-based company.
LeanTaaS’s cloud-based AI solution aims to improve operational efficiency for hospitals. It is Its most frequently used for capacity management within operating rooms, infusion centers and inpatient beds. The company has 500 hospital customers.
CEO Mohan Giridharadas said in an interview with Digital Health Business & Technology this deal will enable the company to take the next step in its growth trajectory.
“Bain has deep healthcare expertise,” Giridharadas said. “They’ve invested in dozens and dozens of companies across all parts of the healthcare ecosystem. With an investment of this magnitude, it enables rapid growth. It allows us to have bigger aspirations. We’re in 500 hospitals, which means there are 4,500 that we’re not in.”
Devin O’Reilly, managing director at Bain Capital Private Equity, said his company has invested in payers, providers, digital health, pharma and other sectors across the ecosystem, which gives it a broader outlook on the trends happening within the industry.
“Healthcare providers are dealing with challenges around managing their business as efficiently as possible,” O’Reilly said. “When I look at the macro trends we’re investing behind, companies that can help healthcare be more efficient are really compelling to us. That’s an area where we’re very bullish.”
LeanTaaS has accumulated $250 million in funding since its inception in 2010, including a $130 million Series D round led by Insight in December 2020. Giridharadas said funding has never been a constraint for the company and there are no plans for an initial public offering in this regard.
Giridharadas and O’Reilly said that LeanTaaS is interested in acquiring companies in the capacity management tech space.
“This is a nascent space,” O’Reilly said. “There are other companies that can be complementary to what LeanTaaS is doing. They are the market leader in a very high growth space and we’ve seen in other healthcare IT markets, and other tech markets, there is usually consolidation around the winners. We think that will happen here.”