Francisco Partners to Acquire McKesson’s Automation Unit

SAN FRANCISCO--(BUSINESS WIRE)--
Francisco Partners, a leading technology-focused private equity firm,
today announced it has signed a definitive agreement to acquire McKesson
Automation, a unit of McKesson Corporation that offers integrated
pharmacy automation solutions for hospitals and health systems. McKesson
Corporation previously announced its intent to divest this division,
which will operate under a new name after the transaction closes. The
transaction is expected to close this quarter and is subject to
customary closing conditions.

“McKesson Automation is highly regarded in the healthcare industry for
its system-wide approach to and deep understanding of the medication
delivery process,” said Chris Adams, a principal at Francisco Partners.
“We are excited to work closely with the existing leadership team to
expand the automation business as a standalone company. We will maintain
a close working relationship with McKesson Corporation to ensure that
the companies’ collective solutions for hospitals and healthcare
providers are complementary and effective.”

“Hospitals today face tremendous challenges – from intensifying payment
and cost pressures to evolving regulatory standards, changing
demographics, and quality of care measures,” said Kraig McEwen,
president of McKesson Automation. “At McKesson Automation, we are
developing technology solutions that help hospitals and health systems
effectively manage these changes while improving patient care and
outcomes. As a standalone company and with the financial and operational
resources that Francisco Partners offers, we will have the ability to
further our commitment to continuously advance medication delivery.”

Located in Pittsburgh, McKesson Automation helps hospitals and health
systems streamline the delivery of medications – from the distribution
source to the patient – shifting focus from manual, time-consuming tasks
to patient care activities that impact outcomes and reduce costs. The
business offers a range of products addressing every stage of medication
delivery within a hospital, including pharmacy, nursing and surgical
services.

Francisco Partners was advised by Robert W. Baird and Kirkland & Ellis
LLP. Financial terms of the transaction were not disclosed.

Francisco Partners is a global private equity firm that specializes in
investments in technology companies. Since its launch over a decade ago,
FP has raised approximately $7 billion and invested in more than 100
technology companies, making it one of the most active investors in the
industry. The firm invests in transaction values ranging from $50
million to over $2 billion, where the firm's deep sub-sector knowledge
and operational expertise can help a company realize its full potential.
For further information, please visit: www.franciscopartners.com.

McKesson Automation is committed to continuously advancing medication
delivery, offering integrated pharmacy automation solutions that help
hospitals and health systems to support improved patient outcomes, build
stronger businesses and manage ongoing change.

for Francisco Partners:Katie Wood Znameroski, 650-388-6650press@franciscopartners.comorfor
McKesson Automation:Betsy Martinelli, 724-741-8341Betsy.Martinelli@McKesson.com

Source: Francisco Partners