Clearwater, a top provider of cybersecurity and compliance solutions for the healthcare industry, has announced a strategic investment from Sunstone Partners, a private equity company that focuses on helping technology-based service and software businesses grow. As part of this deal, Sunstone Partners has acquired a majority stake in Altaris, LLC and other shareholders. The specific financial terms of the transaction have not been disclosed.
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Baxter Lee, Clearwater’s President, shared his excitement about the investment, saying that Sunstone Partners’ support confirms the company’s strategic plans and the strength of its team. He noted that this partnership will give Clearwater the resources needed to grow, innovate, and become a more trusted partner in cybersecurity and compliance for healthcare and defense clients.
This investment enables Clearwater to speed up the expansion of its managed services, consulting, and software solutions. These services support a broad range of healthcare organizations and defense industry clients through its Redspin division, helping them manage complex cybersecurity and compliance challenges.
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As part of this transition, Steve Cagle will leave his role as CEO and take on an advisory position on Clearwater’s board. Baxter Lee, who has been the company’s CFO since 2018 and has been instrumental in its growth over the past eight years, has been promoted to President. Lee has strong financial and operational skills, along with deep knowledge of healthcare services and technology. Brian McManamon will continue leading the Redspin division as President and manage Clearwater’s Managed Security Services and Managed Cloud Services units.
Clearwater is well-known as a leader in healthcare cybersecurity. Earlier this year, Black Book Research ranked Clearwater as the top cybersecurity consulting firm in healthcare for 2025. The company also received recognition in Modern Healthcare’s 2024 Best in Business Awards for excellence in cybersecurity. The Redspin division, which specializes in Cybersecurity Maturity Model Certification for defense contractors, became the first third-party assessor to be recertified in October 2024. Shortly after, its Redspin Ready managed cloud program won the “Critical Infrastructure Cybersecurity Solution of the Year” award from CyberSecurity Breakthrough. Gustavo Alberelli, Managing Partner and Co-Founder of Sunstone Partners, praised Clearwater’s platform for its role in advancing cybersecurity and compliance across healthcare and defense sectors. He expressed enthusiasm about joining forces with the Clearwater team to boost growth and expand their impact in critical infrastructure areas. Alberelli will also join Clearwater’s board along with Ankur Rathi, a Partner at Sunstone. Scott Hammack, an Operating Partner at Sunstone Partners, has been appointed Executive Chairman of Clearwater’s Board. Hammack has extensive experience leading cybersecurity and compliance firms, with recent executive chairman roles at companies like VCheck and NETSPI. Financial advisory services for the transaction were provided exclusively by Stephens, while ArentFox Schiff handled legal matters for Clearwater and Altaris. Sunstone Partners was represented by Choate Hall & Stewart LLP.
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