- General
- September 14, 2020
- 4 minutes read
Silver Lake Doubles Down On GoodRx
Silver Lake Co-CEO Egon Durban. Photo credit: Stuart Isett/Fortune Brainstorm Tech, under Creative Commons license Silver Lake, a tech-focused private…
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| Silver Lake Co-CEO Egon Durban.
Photo credit: Stuart Isett/Fortune Brainstorm Tech, under Creative Commons license
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Silver Lake, a tech-focused private equity firm, will invest an additional $100 million into GoodRx, an online prescription drugs marketplace in which it already controls a 35% stake, as indicated by regulatory filings. GoodRx recently formally filed to go public and just issued some amendments to its filing, among them an indication that Silver Lake, already a significant shareholder in the company, is investing an additional $100 million on the cusp of its public offering. Silver Lake will invest the stated amount through a private placement that’ll see it fetch shares at GoodRx’s initial IPO price.
Along with the indication of Silver Lake’s investment, GoodRx’s amendments also makes note of a $500 million+ stock award set aside for the company’s two co-founders, Douglas Hirsch and Trevor Bezdek. The award, a big one by relative standards, is apparently being given to boost up the equity commitment of GoodRx’s co-founders, who prior to the IPO controlled just 1.3% stakes in the company. It seems that the two co-founders cashed out most of their shares when Silver Lake earlier invested in GoodRx in 2018. The stock awards being issued to them are both time and performance-based rather than a one-time award, designed to incentivize their commitment to the company in the long-term.
GoodRx is one of the rare companies of its kind, being solidly profitable and with strong and growing revenues and more so with a relatively minimal workforce. GoodRx, which has roughly 340 employees, recorded $388 million in revenues and $66 million in net income last year. More impressively, the company has been profitable for four years straight. It’s no surprise that Silver Lake is doubling down on GoodRx, given the company’s potential to soar on the public markets due to its strong financial standing.
Lastly, GoodRx’s amended filing also indicates that the company acquired Scriptcycle, a retail prescription management startup, on the 31st of August. GoodRx coughed up $60 million for Scriptcycle, which is based out the city of the U.S. state of North Carolina.
