Published by Wanda Rich
Posted on September 17, 2025
3 min readLast updated: January 19, 2026
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H.I.G. Capital portfolio company Iron Bow Technologies has sold its telehealth division SoldierPoint Digital Health to government contractor GovCIO, completing a transaction that allows Iron Bow to concentrate on core IT services while positioning the telehealth unit for expansion.
H.I.G. Capital portfolio company Iron Bow Technologies has sold its telehealth division SoldierPoint Digital Health to government contractor GovCIO, completing a transaction that allows Iron Bow to concentrate on core IT services while positioning the telehealth unit for expansion.
Financial terms of the deal were not disclosed. GovCIO, which is owned by private equity firm Welsh, Carson, Anderson & Stowe, will absorb SoldierPoint's workforce of approximately 300 employees and assume management of key Veterans Affairs contracts.
SoldierPoint operates digital health platforms serving more than 2.7 million veterans through the Department of Veterans Affairs system. The unit holds a seven-year, $2 billion Connected Care Integrated Network contract that provides telehealth services to over 4 million veterans nationwide.
According to Pulse Miami-based H.I.G. Capital worked with Iron Bow management to restructure SoldierPoint from its origins as a hardware-focused telehealth program into a services-oriented platform emphasizing digital innovation and application development. This transformation more than doubled the division's earnings during H.I.G.'s ownership period.
"GovCIO is uniquely positioned to support SoldierPoint's future growth, and this divestiture positions Iron Bow to accelerate efforts within our core IT solutions business," said Iron Bow President and CEO Rene LaVigne.
The sale reflects H.I.G.'s approach of acquiring companies with transformation potential and executing operational improvements before seeking exits. Jonathan Fox, managing director at H.I.G., characterized the outcome as demonstrating "the strength of the management team and H.I.G.'s ability to support long-term growth."
For GovCIO, the acquisition strengthens its position within the Department of Veterans Affairs while adding specialized healthcare technology capabilities. SoldierPoint's employees will join GovCIO's Veteran and Enterprise Technology Solutions division under the leadership of Kristin Gill.
GovCIO plans to leverage its experience with artificial intelligence, low-code development platforms and emerging technologies to enhance SoldierPoint's service delivery under the CCIN contract framework.
"This acquisition represents the addition of important capabilities that enhance our ability to support the mission of our largest client, the Department of Veteran Affairs," said Joe Cormier, GovCIO's chief operating officer and chief financial officer.
The transaction occurs amid continued consolidation within the government technology sector, where companies with established federal contracts and specialized capabilities attract premium valuations from private equity buyers.
H.I.G. Capital maintains an active presence in government-focused technology investments. Recent transactions include the formation of Pellera Technologies through the merger of Converge Technology Solutions and Mainline Information Systems, creating a combined entity with approximately $4 billion in annual revenue focused on cybersecurity, cloud infrastructure and artificial intelligence solutions.
SoldierPoint's evolution from a basic telehealth program launched in 2010 to a comprehensive digital health platform illustrates the modernization occurring across federal agencies. The VA's telehealth program has become one of the largest digital health initiatives globally, serving a veteran population exceeding 9 million individuals.
Iron Bow will continue operating its core IT solutions business, which provides technology implementation and management services to government, commercial and healthcare clients. The company maintains partnerships with major technology vendors and focuses on transforming client technology investments into operational capabilities.
The deal was facilitated by Jefferies as financial advisor and McDermott Will & Schulte as legal counsel. H.I.G. Capital, founded in 1993, manages $70 billion in capital across multiple investment strategies including private equity, debt financing, real estate and infrastructure investments.
Both companies expect the transaction to enable focused growth within their respective market segments, with Iron Bow concentrating on IT solutions while GovCIO expands its healthcare technology offerings for federal clients.
A portfolio company is a company or entity in which a private equity firm or venture capital firm invests.
Digital transformation is the process of using digital technologies to create new or modify existing business processes, culture, and customer experiences.
A private equity firm is an investment management company that provides financial backing and makes investments in private companies.
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