How Syntellis Grew from a Software Carveout to a Successful Standalone Company
Nov 2, 2023
auto_awesome
Learn about the successful carveout and sale of Syntellis, a performance management software business. Explore the challenges hospitals face and the importance of software systems. Discover the rebranding journey, the three-way partnership, and the balancing of healthcare costs and insurance payments.
37:43
AI Summary
AI Chapters
Episode notes
auto_awesome
Podcast summary created with Snipd AI
Quick takeaways
Strategic partnerships and carving out value can lead to the creation of successful standalone companies.
Sintellis provided enterprise performance management software to help hospitals improve profitability in a changing healthcare landscape.
Deep dives
Partnership with Sintellis
Tomabravo and Madison Dearborn partners joined forces to invest in Sintellis, a major player in the enterprise performance management business selling software to large hospitals, banks, colleges, and universities. They identified the opportunity to carve out and build on value, leading to the creation of a standalone company called Sintellis. After three years of improving operations and driving innovation, Sintellis was sold to Roper Technologies in a $1.4 billion deal.
Challenges Faced by Hospital Systems
Hospital systems face numerous challenges in balancing the cost of services, what payers are willing to reimburse, and maintaining profitability. Sintellis provided enterprise performance management software to help hospitals with budgeting, planning, and decision support. The software allowed hospitals to analyze financial and operational data, make data-driven decisions, and improve profitability in a changing healthcare landscape.
Building a Strong Partnership
The partnership between Tomabravo and Sintellis CEO Flint Bretton was built on trust, collaboration, and shared values. Flint's track record of being a successful software CEO and his passion for building strong teams made him the right fit for leading Sintellis. Tomabravo's expertise and operational focus were instrumental in carving out Sintellis from its parent company and helping it become a successful standalone software company.
Selling Sintellis to Roper Technologies
The growth and success of Sintellis attracted the attention of Roper Technologies, an industrial holding company for vertical market software companies. Tomabravo saw Roper as the right buyer due to their long-term investment horizon, focus on customer care, and shared strategic vision. After months of building a business plan and ensuring alignment, Sintellis was sold to Roper Technologies in a deal that fortified the company's position as a category leader in the market.
In the Season Two premiere, a behind-the-scenes journey with Thoma Bravo Senior Partner A.J. Rohde to discuss our deal to acquire and carve out Syntellis, a performance management software business, from its parent company, Kaufman Hall Software. By partnering with Madison Dearborn, Thoma Bravo crafted a strategic business plan to carve out Syntellis into a standalone company.
A.J. speaks with Syntellis CEO Flint Brenton, a five-time successful software CEO, about how Flint ultimately became the leader of Syntellis after a breakfast meetup in a small Californian diner, and how their shared Midwestern sensibility has led to a successful partnership, ultimately selling Syntellis to Roper Technologies in 2023. This episode underlines the significance of forming strategic partnerships, fostering a robust company culture, and even picking the right headquarters in the middle of the Covid pandemic.