Sermo, a social media platform for doctors, has received an investment from Abry Partners making it the company’s sole backer.
The investment is a recapitalization of the company, meaning that Abry bought out Sermo’s previous investors to become the sole investor in Sermo. The social network for doctors did not disclose the size of the investment.
Sermo CEO Peter Kirk said having just one investor “makes things more straightforward” for the company’s future strategy.
“The key thing is going from small investors who didn’t do a whole lot to support us to an A+ grade private equity player that can both support us and keep our backs free,” he said. “It is also the vote of confidence they chose to invest into a smaller platform like ours.”
The investment will fuel product launches, differentiated technologies, and physician membership growth in specialty areas, the company said in a statement.
For its physician members, Sermo is investing in building a more interactive membership, Kirk added. For its market research clients, Sermo plans to offer more insights and a more interactive experience with members.
“We invested into a completely new membership experience for doctors, allowing them to communicate in a much more 2019 setting and increase the ease of collaboration among doctors,” Kirk added. “We want to create more insights for pharma clients and more opportunities to participate on the platform and make it more interactive.”
Sermo was founded in 2005. In 2012, healthcare market research company WorldOne acquired the company, giving the social network new research capabilities. WorldOne later took on the Sermo name and focused on building that brand. The social platform has more than 800,000 members around the world.
Abry Partners, founded in 1989, has completed more than 550 transactions and invested about $80 billion, according to its website. It has healthcare investments alongside Sermo, including marketing agency KnowledgePoint360, toxicology lab Aegis, and dermatology group U.S. Dermatology Partners.