Clearwater, a leading provider of cybersecurity and compliance solutions for the healthcare sector, has announced a strategic investment from Sunstone Partners, a private equity firm specializing in growth-driven technology and software companies. Through this investment, Sunstone Partners has acquired majority ownership from Altaris, LLC and other existing shareholders. Financial details of the deal were not disclosed.
Baxter Lee, President of Clearwater, emphasized the significance of the partnership: “Sunstone Partners’ investment validates our strategy, our team, and the impact we deliver. This support will enable us to expand our services, innovate further, and continue serving as a trusted partner in cybersecurity and compliance.”
The investment positions Clearwater to enhance its managed services, consulting, and software solutions, benefiting healthcare clients as well as organizations in the defense industrial base through its Redspin division. These sectors are facing increasingly complex cybersecurity and compliance challenges.
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As part of the leadership transition, Steve Cagle will step down as CEO and move into an advisory role on Clearwater’s Board. Baxter Lee, who has been the company’s CFO since May 2018, has been promoted to President. Lee brings nearly eight years of experience in financial and operational management, with deep expertise in healthcare services and technology.
Brian McManamon will continue leading Clearwater’s Redspin division as President, as well as overseeing the company’s Managed Security Services and Managed Cloud Services units.
Lee added, “With the backing of Sunstone Partners, we are better equipped to scale our offerings, continue innovating, and uphold the high standards our clients expect. Now, more than ever, organizations need strong cybersecurity and compliance support.”
This partnership further strengthens Clearwater’s standing in the healthcare cybersecurity market. Earlier this year, Black Book Research recognized the company as the top cybersecurity consulting firm in healthcare, and Modern Healthcare included Clearwater in its 2024 Best in Business Awards for cybersecurity.
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Clearwater’s Redspin division is also a leader in Cybersecurity Maturity Model Certification (CMMC) services for the defense sector. In October 2024, Redspin was the first CMMC Third-Party Assessment Organization to achieve re-certification. Its Redspin Ready-managed cloud program was later named “Critical Infrastructure Cybersecurity Solution of the Year” by CyberSecurity Breakthrough.
Gustavo Alberelli, Managing Partner & Co-Founder of Sunstone Partners, said, “Clearwater has built an outstanding platform to drive cybersecurity and compliance excellence across healthcare and defense. We are excited to collaborate with the team to accelerate growth and expand their impact in critical infrastructure sectors.” Alberelli and Ankur Rathi, Partner at Sunstone, will join Clearwater’s Board.
Additionally, Scott Hammack, Operating Partner at Sunstone Partners, has been named Executive Chairman of Clearwater’s Board of Directors. Hammack brings decades of leadership experience in technology-enabled cybersecurity and compliance businesses, including previous Executive Chairman roles at VCheck and NETSPI.
Stephens served as exclusive financial advisor, and ArentFox Schiff acted as legal counsel to Clearwater and Altaris, LLC. Choate Hall & Stewart LLP served as legal advisor to Sunstone Partners.
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