Key Takeaways
- • Francisco Partners completed the all-cash take-private of Weave Communications, the Lehi, Utah-based patient engagement and payments software company, in a transaction valued at about $650 million.
- • Weave stockholders received $7.40 per share, a premium of about 34% to the unaffected closing price on August 17, the last full trading day before the deal was announced.
- • The aggregate merger consideration payable to stockholders was about $597 million, according to the company's closing filing, and Weave's shares have stopped trading on the New York Stock Exchange.
- • Weave became a wholly owned subsidiary of Willow Parent, an affiliate of Francisco Partners, and will keep its name and Lehi headquarters.
- • The deal closed about two months after signing, within the fourth-quarter timetable set at announcement, with Jefferies advising Weave and Kirkland & Ellis advising Francisco Partners.
Summary
Francisco Partners has completed its acquisition of Weave Communications, a Lehi, Utah-based patient engagement and payments software company, in an all-cash take-private valued at about $650 million, according to HedgeCo.Net. Weave stockholders received $7.40 a share, a premium of about 34% to the company's unaffected closing price on August 17, the last full trading day before the deal was announced. The closing filing put the aggregate merger consideration payable to stockholders at about $597 million. With the merger complete, Weave's shares have stopped trading and are no longer listed on the New York Stock Exchange.
Weave became a wholly owned subsidiary of Willow Parent, an affiliate of Francisco Partners. The company will retain its name and its Lehi headquarters. Weave's software is used by independent healthcare practices to manage patient calls and texts, scheduling, insurance verification and payments. The company says more than 40,000 practice locations use its platform. Chief executive Brett White said private ownership would allow the company to invest more in its AI tools and payments offering. Francisco Partners co-president Ezra Perlman said Weave sits at the center of how tens of thousands of practices communicate with patients and collect revenue.
The deal closed about two months after signing, within the fourth-quarter timetable set when it was announced. Jefferies served as exclusive financial adviser to Weave, with Orrick, Herrington & Sutcliffe as legal counsel. Kirkland & Ellis advised Francisco Partners. Francisco Partners, which focuses on technology and tech-enabled businesses, says it has raised more than $75 billion and invested in more than 500 technology companies.
The transaction fits a broader pattern of sponsors acquiring small-cap vertical software companies whose public valuations have lagged. For private equity, the thesis is that payments and AI-driven workflow tools can raise revenue per customer faster away from quarterly reporting. For public investors, the 34% premium underscores that sub-scale software names may be cheaper to own privately than the market implies.
Weave became a wholly owned subsidiary of Willow Parent, an affiliate of Francisco Partners. The company will retain its name and its Lehi headquarters. Weave's software is used by independent healthcare practices to manage patient calls and texts, scheduling, insurance verification and payments. The company says more than 40,000 practice locations use its platform. Chief executive Brett White said private ownership would allow the company to invest more in its AI tools and payments offering. Francisco Partners co-president Ezra Perlman said Weave sits at the center of how tens of thousands of practices communicate with patients and collect revenue.
The deal closed about two months after signing, within the fourth-quarter timetable set when it was announced. Jefferies served as exclusive financial adviser to Weave, with Orrick, Herrington & Sutcliffe as legal counsel. Kirkland & Ellis advised Francisco Partners. Francisco Partners, which focuses on technology and tech-enabled businesses, says it has raised more than $75 billion and invested in more than 500 technology companies.
The transaction fits a broader pattern of sponsors acquiring small-cap vertical software companies whose public valuations have lagged. For private equity, the thesis is that payments and AI-driven workflow tools can raise revenue per customer faster away from quarterly reporting. For public investors, the 34% premium underscores that sub-scale software names may be cheaper to own privately than the market implies.
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