Clearwater, recognized as a leading provider of cybersecurity and compliance solutions for the healthcare industry, has announced a significant strategic investment from Sunstone Partners. This private equity firm specializes in advancing technology-enabled services and software companies. With this investment, Sunstone Partners has acquired a majority ownership stake in Clearwater, taking over from Altaris and other existing shareholders. The terms of this deal have not been disclosed.
This partnership is set to empower Clearwater to enhance its managed services, consulting, and software offerings. As a result, the company aims to deliver even greater value to its clients in the healthcare sector, as well as those in the defense industrial base, particularly through its Redspin division. These clients are currently navigating increasingly complex challenges related to cybersecurity and compliance, making Clearwater’s solutions essential.
In the wake of this investment, notable changes are taking place within Clearwater’s leadership. Steve Cagle, the current CEO, will transition to a Board advisory role, allowing him to guide while stepping back from daily operations. In his place, Baxter Lee has been promoted to President. Lee has played a crucial role in Clearwater’s growth since joining the company as CFO in May 2018. With nearly eight years of service, he brings a wealth of financial expertise and operational management skills, as well as a strong understanding of healthcare services and technology.
Brian McManamon will continue in his role as President of Clearwater’s Redspin division, along with his responsibilities as General Manager of the company’s Managed Security Services and Managed Cloud Services unit. This continuity in leadership ensures that Clearwater remains focused on delivering top-notch services to its clients.
The new partnership further solidifies Clearwater’s status as a leader in the cybersecurity and compliance market for healthcare. Earlier this year, the company was recognized as the top cybersecurity consulting firm for healthcare, according to Black Book Research’s report on the Top 100 Healthcare IT Advisory and Consulting Project Areas projected to be in high demand for 2025. Moreover, Clearwater was also honored in Modern Healthcare’s 2024 Best in Business Awards within the Cybersecurity category, showcasing its excellence and commitment to the industry.
Clearwater’s Redspin division is particularly noted for its leadership in Cybersecurity Maturity Model Certification (CMMC) services, especially for clients within the defense industrial base. In October 2024, Redspin made history by becoming the first CMMC Third-Party Assessment Organization to receive recertification.
Scott Hammack, who is an Operating Partner at Sunstone Partners, has taken on the role of Executive Chairman of Clearwater’s Board of Directors. Hammack adds tremendous value to the leadership team, bringing decades of experience in steering and growing technology-enabled cybersecurity and compliance businesses. He has previously held Executive Chairman roles at prominent companies such as VCheck and NETSPI, and his expertise is expected to be instrumental as Clearwater continues its path of growth and innovation in the cybersecurity landscape.
Advisors: Stephens served as exclusive financial advisor, and ArentFox Schiff served as legal advisor to Clearwater and Altaris in the deal. Choate Hall & Stewart acted as legal advisor to Sunstone Partners.
KEY QUOTES:
“There has never been a more critical time to help organizations secure their data and operations. Sunstone Partners’ investment is a powerful endorsement of Clearwater’s strategy, people and impact. It gives us the resources to expand, innovate and strengthen our role as a trusted cybersecurity and compliance partner. Most importantly, we remain committed to delivering the same exceptional service and outcomes our clients have come to expect.”
Baxter Lee
“Clearwater has built an extraordinary platform for driving cybersecurity and compliance excellence across the healthcare ecosystem and the defense industrial base. We are thrilled to partner with the Clearwater team to help accelerate their growth and deepen their impact on key critical infrastructure sectors.”
Gustavo Alberelli, Managing Partner & Co-Founder at Sunstone Partners; Alberelli joins the Clearwater Board, along with Ankur Rathi, Partner at Sunstone Partners.
