Scoop: EHE Health seeks buyer

Private equity-backed EHE Health, which partners with employers to provide preventive health exams and digital tools, is up for sale, sources tell Sarah.

Why it matters: Companies are focused on how to encourage retention, while also looking to reduce health care costs as wages increase with inflation. EHE Health fits within this theme.

What’s happening: Houlihan Lokey is advising on the sale of the business, the sources say, one of whom adds that first-round bids were due late last week.

  • The company is marketing around $37 million of pro forma adjusted EBITDA, though TTM EBITDA is closer to $16 million, sources say.
  • DW Healthcare Partners and Summit Partners invested in EHE in February 2016.

How it works: EHE says it operates or contracts with 200 health clinics across the U.S. and partners with midsize and large employers.

  • Annual exams for employee members include preventive screenings, full cancer and heart health assessments, mental health assessments, specialist referrals and more.

Yes, and: EHE since the pandemic has focused on expanding beyond in-person care, adding virtual checkups, follow-ups and other forms of remote care.

  • For example, EHE recently partnered with chronic care digital health business Welldoc to form Thrive Now, which aims to help to manage pre-diabetes, diabetes and hypertension with digital coaching.

Between the lines: One source tells Sarah EHE has about 120 customers, 20 of which have expanded such that all employees have access to the platform, versus C-suite executives or senior company leaders only.

  • “The embedded earnings power of the other 100 customers is pretty enormous,” the source says, explaining that the remainder have not yet transitioned over.

EHE, Summit and DW Healthcare did not return requests for comment. Houlihan declined to comment.

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