Healthcare software firm Weave Communications to go private after being acquired by Francisco Partners

The healthcare technology platform provider Weave Communications Inc. said today it’s going to exit the public markets after agreeing to be acquired for $650 million by the private equity firm Francisco Partners in an all-cash deal.

The terms mean that shareholders will receive $7.40 per share they own, amounting to a premium of 34% on Weave’s Monday closing stock price. Weave said it will delist from the New York Stock Exchange, where it has traded under the ticker symbol WEAV since going public in 2021, when the deal closes.

Founded in 2008, Weave is the creator of a patient communication platform for independent medical, dental, optometry and veterinary practices. According to its Chief Executive Brett White, it’s a category of customers that most software companies overlook.

Its platform is used to send communications to patients, schedule appointments and process payments. “Together with Francisco Partners, we will be able to enhance our ability to invest in our AI platform, deepen our payments and revenue cycle management capabilities and further our vision for a better healthcare experience at every practice,” White said.

The deal comes in the wake of Weave’s own acquisition of a startup called TrueLark Inc., which had developed artificial intelligence front-desk automation tools. Weave said at the time it was buying the startup so it could expand its agentic AI capabilities to multi-location practices.

Weave has grown its revenue steadily since its initial public offering, and in fiscal 2025 it was able to generate $239 million in sales, up 17% from the prior year. During the first quarter of fiscal 2026, it reported revenue of $65.5 million, up 17% from the same period a year earlier.

But despite this growth, it appears that Weave has fallen victim to fears around the so-called “SaaSpocalypse,” or the perceived threat that the rise of AI poses to software companies. Because of the rise of vibe coding tools that allow people to create software simply by describing what they want, many investors fear that they may ultimately put some software companies out of business – after all, why pay an expensive subscription fee if you can create your own software to replace it?

Though Weave’s stock surged 32% earlier today on the back of the announcement, it’s still down 4% in the year to date, and more than 8% over the last 12 months. Its current market capitalization is way below its peak, too. When Weave first went public in November 2021, its stock hit an all-time high of $22.40, but it closed at just $7.28 today, leaving it with a market cap of $582.5 million, down from $1.4 billion at its peak.

Francisco Partners looks like a good fit for Weave and will be confident in its ability to reignite the company’s growth. Since launching in 1999, the private equity firm has raised more than $75 billion in capital and invested in more than 500 technology firms, including many in the healthcare industry. One of its biggest acquisitions saw it buy the medical software firm AdvancedMD Inc. in a $1.125 billion deal in November 2024.

“Weave is ideally positioned to capitalize on the healthcare industry’s large and growing demand for AI to help optimize its practices and services,” said Francisco Partners co-President Ezra Perlman. “Its vertical platform sits at the center of how tens of thousands of practices communicate with their patients and collect revenue, a position that’s difficult to build and harder still to replicate.”

Weave’s board of directors has unanimously agreed to accept Francisco Partners’ offer, but the deal is still subject to shareholder approval and regulatory clearance. However, it’s expected to close before the end of the year.

Photo: Weave Communications