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DocuTap sells majority stake to global private equity firm

SIOUX FALLS (AP) -- Sioux Falls-based electronic medical records company DocuTap said it has sold a majority stake to global private equity firm Warburg Pincus.

SIOUX FALLS (AP) - Sioux Falls-based electronic medical records company DocuTap said it has sold a majority stake to global private equity firm Warburg Pincus.

Terms of the transaction were not disclosed, the Argus Leader reported Wednesday.

DocuTap provides software for electronic medical records, practice management software and revenue-cycles management for more than 1,300 urgent care and primary care clinics. The company has added 350 urgent care clinics to its network over the past year and has raised more than $30 million in private equity from 2012 to 2015.

Eric McDonald, DocuTap's founder and CEO, said the company was approached by Warburg Pincus, which has $40 billion in private equity assets under management. McDonald said Warburg Pincus provides an even more significant opportunity to grow the business, especially with services to pediatric and primary care providers.

"They're looking at urgent care very similar to how we are. It's becoming more of an on-demand space versus just urgent care," McDonald said. "It just gives us a lot more freedom to make larger business decisions if we want to. We had capital before, but it wasn't to the same degree it is today and will be going forward."

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Vishnu Menon, Warburg Pincus managing director, said consumers want convenience, simplicity and speed.

"As the leader in urgent care technology, DocuTap is positioned to take the reins in the on-demand healthcare market," Menon said in a news release.

The acquisition closed at the end of April.

McDonald plans to continue as CEO, and the business will remain in Sioux Falls. It has grown to 265 employees, tripling its staff in the past four years.

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