Updox’s Acquisition by Evercommerce Creates Industry-Leading Communications and Patient Engagement Platform
Transaction Background and Thesis
Updox, LLC (“Updox”) represents a transformative company in the healthcare communications market, providing an enterprise communications platform and other capabilities for virtual health and patient engagement. Updox’s offering includes paperless physician practice office software solutions serving both in-person and virtual care. The Company was primarily founder and management-owned until TT Capital Partner’s (TTCP) investment in January 2017. Building on TTCP’s knowledge and experience in virtual care and patient engagement, we believed physician practices’ efficiency could be greatly improved and modernized through Updox’s technology offering. TTCP believed that Updox had the potential to create meaningful value by strategically upselling new products into physician practices alongside the company’s legacy offerings to further penetrate existing physician practice customers, as well as expand into previously untapped adjacent markets.
- Revamped inside sales functions and strategy, leading to an 85% increase in annual contract value and a 2x+ increase in monthly bookings within the first five months of TTCP’s investment
- Enhanced initial product offering which was a basic communications solution with multiple innovations around patient engagement, leading to meaningful cross-selling and revenue growth
- Created dedicated customer success team for improved client retention across the customer base
- Drove an 85%+ increase in leads by modifying and expanding the existing marketing strategy
- Identified an attractive new market in telehealth and supported successful entrance
TTCP brought thought leadership that helped shape the direction of the product and the markets the company pursued. The team at TTCP was engaged throughout – offering assistance in the value creation execution and bringing resources for sales enhancements, operating prioritization and channel partnership evaluation.
Mike Morgan, CEO of Updox
TTCP helped Updox grow from a limited-scale patient communication and direct messaging company into a physician practice focused, industry-leading communications and patient engagement platform, delivering a strong value to practices. During TTCP’s partnership, Updox more than doubled the number of direct customers to 7,200 and increased annual recurring revenues (ARR) by 3.5x.
EverCommerce, a Denver-based global provider of marketing, business management and customer experience software solutions, acquired Updox in December of 2020. Updox joins EverCommerce’s existing healthcare offerings focused on small to medium-sized businesses and serves as a logical complement to EverCommerce’s growing capabilities in the space.