Telemedicine company UpHealth Holdings agreed to sell subsidiary Cloudbreak Health LLC for $180 million in cash, the South Florida Business Journal reported. The sale to private equity firm GTCR comes two months after Delray Beach-based UpHealth filed for chapter 11 bankruptcy in New York federal court. The company will use the proceeds from the sale to pay debts and cover other expenses. Moving forward, UpHealth will focus on growing TTC Healthcare, described as a "cash flow positive" behavioral health platform. "UpHealth is executing on paying down majority of its debt to our noteholders, with the goal of freeing capital to grow our behavioral health business," said Avi Katz, chairman of the board. CloudBreak Health, a provider of healthcare focused language interpretation services, more than doubled its revenue over the past three years, Katz added. The deal comes two years after UpHealth's merger with GigCapital2 and Cloudbreak Health LLC in 2021. In September, it filed for bankruptcy after a contract dispute with investment bank Needham & Co tied to the merger. A judge ordered UpHealth to pay Needham $31 million.
