March 9, 2022

One of Sioux Falls’ strongest startup success stories has added a chapter: an acquisition by an industry leader.

Experity, which was formed in 2019 after Sioux Falls-based DocuTap was acquired by private equity firm Warburg Pincus in 2016, has received a strategic growth investment from GTCR, a Chicago-based private equity firm with “significant experience in health care technology and services.”

New York-based Warburg Pincus will retain a minority interest in the company. It formed Experity by combining DocuTap, which was founded in Sioux Falls by Eric McDonald in the early 2000s, with an Illinois-based company that worked in the same industry.

Experity has become the national leader in software and services for on-demand health care, with nearly 50 percent of the U.S. urgent care market running on its solutions, the company said in statement.

The company provides an integrated operating system complete with electronic medical record, practice management, patient engagement, billing, teleradiology, business intelligence and consulting solutions.

“Experity’s vision has always been to partner with urgent care operators and give them the right tools to focus on what matters most: the patient. This is Experity’s second growth investment partner, and to me, this signals the importance of on-demand care and fueling the patient-centered health care revolution,” said David Stern, CEO of Experity. “This investment from GTCR is a major milestone in Experity’s journey, giving us the resources that we need to continue operating as the trusted business adviser to our industry and clients.”

GTCR and Experity plan to continue to invest in the company’s differentiated software offering and “partner with Experity’s experienced team to drive innovation and deepen utilization of the platform, particularly as customer needs for such tools continue to grow behind expanding patient volumes,” the company said.

“We are proud to partner with Experity, the clear market leader in SaaS software solutions and technology-enabled services for the attractive urgent care industry,” said Sean Cunningham, managing director at GTCR. “We plan to support Experity with additional capital for both organic growth initiatives and strategic acquisitions, which will continue to position the business for long-term growth.

“Experity has delivered incredible value to the urgent care sector through the development of innovative and value-additive solutions, and we look forward to further enabling better access to care for all individuals and communities nationwide.”