ModMed, a provider of specialty-specific software for medical practices, is seeing increasing opportunities for larger acquisitions as artificial intelligence (AI) reshapes the sector, co-CEO Joe Harpaz said.

While the Boca Raton, Florida-based company remains focused on smaller acquisitions, Harpaz said AI is creating larger M&A opportunities as buyers shift from point solutions to integrated specialty platforms, deep specialty datasets become a key competitive advantage, and AI built for one specialty makes expansion into adjacent specialties through acquisitions more compelling.

Together, these converging trends are driving “a multiyear shift toward larger, more strategic deals,” according to Harpaz.

Clearlake Capital Group acquired a majority stake in ModMed from Warburg Pincus in April 2025 at a USD 5.3bn valuation, including debt. The company’s revenue is approaching USD 1bn, with the vast majority recurring, according to Harpaz. The business is “very profitable” and expects sustained double-digit revenue growth.

ModMed has completed more than eight acquisitions and continues to evaluate deals, with a preference for software and electronic health record (EHR) businesses serving existing specialties, according to Harpaz. The company typically enters new specialties organically before supplementing growth with acquisitions.

Harpaz said ModMed would evaluate acquisitions that could facilitate entry into the much larger primary care market.

The company has built what Harpaz described as a “very successful” orthopedics platform and also would consider acquiring physical therapy-specific software businesses that complement the offering.

Future acquisitions could be funded with a combination of cash, debt, and equity, he said.

ModMed develops software that combines EHRs, practice management, billing, patient engagement, payment processing, and analytics in a single platform.

The company supports 12 specialties: dermatology, ophthalmology, orthopedics, gastroenterology, ENT/otolaryngology, OB/GYN, pain management, plastic surgery, podiatry, urology, allergy, and general surgery.

In November 2025, ModMed launched the latest version of ModMed Scribe, an AI assistant for its EHR platform that listens to patient encounters and automatically suggests visit notes, billing codes, and downstream clinical actions. The product has already been used for roughly 1m patient visits, Harpaz said.

In April, ModMed acquired Bonsai Health, a Los Angeles-based AI-driven patient reactivation and scheduling platform. Previous acquisitions have included orthopedics, gastroenterology, ophthalmology, and podiatry EHRs, as well as practice management, patient engagement and communication platforms, and allergy testing and immunotherapy software.

Acquisition targets so far have ranged from USD 1m to USD 25m in revenue, Harpaz said.

ModMed serves independent single-physician offices, large multi-location specialty groups, and ambulatory surgery centers. Nearly 50,000 providers use the company’s platform, according to Harpaz.

Competitors include specialty-focused and ambulatory EHR, practice management, and physician workflow providers such as NextGen Healthcare, athenahealth, eClinicalWorks, Greenway Health, Nextech, Tebra, AdvancedMD, and SRS Health.

Broader healthcare technology vendors with specialty-care offerings include Epic, Oracle Health, Veradigm, CareCloud, and Phreesia.

Recent sector transactions include Madison Dearborn Partners’ investment in NextGen Healthcare alongside existing majority owner Thoma Bravo in 2025. Thoma Bravo originally acquired NextGen Healthcare in a September 2023 take-private transaction valued at USD 1.8bn. Also in 2025, Waystar acquired Iodine Software for approximately USD 1.25bn, including debt, while the previous year, Francisco Partners acquired AdvancedMD from Global Payments for approximately USD 1.13bn.

ModMed was founded in 2010 by co-CEO Dan Cane and dermatologist Michael Sherling, the company’s chief medical and strategy officer.

Harpaz joined as president and COO in 2018 and was appointed co-CEO in February 2024. Previously, he founded digital technology and marketing agency Immediatech Corporation and sold it to The Thomson Corporation.

ModMed employs approximately 2,500 people and also maintains an office in Hyderabad, India.