Nautic Partners to take PBM Tabula Rasa private in $570M cash deal

Hospitals to receive $9 billion under proposed 340B remedy

Nautic Partners has agreed to acquire Tabula Rasa HealthCare in a take-private deal, the pharmacy benefit manager announced in a news release Monday. 

The private equity firm plans to merge Tabula Rasa with ExactCare Pharmacy, a Nautic Partners portfolio company that provides medication management and pharmacy services. The all-cash deal values Tabula Rasa at $570 million, including debt of approximately $262 million. 

Under the terms of the proposed agreement, Tabula Rasa shareholders will receive $10.50 in cash for each share of common stock held at the close of the transaction, expected in the fourth quarter. Tabula Rasa will stop trading on the Nasdaq exchange once the transaction is finalized. ExactCare Executive Chair John Figueroa will serve as chair and CEO of the combined company. Brian Adams, Tabula Rasa’s president and CEO, will assume the role of president. 

The company’s shares opened at $10.21 on Monday, up 31.2% from Friday’s close. 

Nautic Partners and Tabula Rasa did not immediately respond to interview requests. 

Husband and wife pharmacists Calvin and Orsula Knowlton founded Tabula Rasa in 2009 with the aim of providing medication management technology and other prescription services for Medicaid, Medicare and Program for All-Inclusive Care for the Elderly enrollees. The company entered the public markets with a $59.3 million Nasdaq offering in 2016. Indaba Capital Management paid an undisclosed sum to acquire a 25% stake in the company in September 2022, with the aim of diversifying Tabula Rasa’s management and board of directors. 

Tabula Rasa has more than 180 insurer, health system and other customers, including several Blue Cross Blue Shield plans and Cigna’s Express Scripts PBM, according to the company. Tabula Rasa also claims to serve more than 90% of current PACE programs, including Livonia, Michigan-based Trinity Health’s PACE, Mountain Empire PACE in Virginia and Center for Elders’ Independence in California.  

The company’s net loss decreased 80.1% to $9.9 million, or 38 cents per share, on revenue growth of 24% to $90 million compared with the year-ago period, according to a second-quarter earnings filing with the Securities and Exchange Commission on Monday. 

Tabula Rasa also announced it was canceling its second-quarter earnings call with investors on Tuesday in light of the proposed deal and would no longer provide additional financial guidance for 2023. 

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Marie Maynes
Marie Maynes is a Sports enthusiast and writes for the Sports section of ANH.