In January, Sheridan Capital Partners, a Chicago, Illinois-based healthcare private equity firm, announced its first acquisition of the year with the purchase of ICANotes.
ICANotes is a purpose-built electronic medical record (EMR) platform designed exclusively for behavioral health providers. ICANotes enables clinicians to document care, support compliance and bill at appropriate reimbursement levels. It is based in Baltimore, Maryland.
Sheridan Capital Partners focuses on lower-middle-market buyouts and growth equity in the United States and Canada. Its website notes that it has raised more than $1 billion in capital and invested in 21 different platforms, as of January 2026.
While the specific financial terms of the private acquisition were not disclosed, Sheridan confirmed to the LevinPro HC team that the deal is a majority investment. McDermott Will & Schulte served as legal counsel and Harris Williams served as financial advisor to Sheridan.
According to data in the LevinPro HC database, 28 eHealth acquisitions were reported in the first month of 2026. Of those deals, two of them have been in the EMR subsector. Not only did eHealth’s M&A deal volume rise 21% from 2024 to 2025 (248 deals to 301 deals), but EMR’s increased, too, going from two in 2024 to five in 2025.
The acquisition of ICANotes was not a sudden move. The deal process had been underway for roughly six months, and Sheridan had been engaged with the ICANotes management team for several years. This long-term relationship underscores Sheridan’s commitment to both the digital health and behavioral health sectors.
When discussing how ICANotes will fit into Sheridan’s broader portfolio, the Sheridan team noted the company had “a strong product market fit and a diversified and loyal customer base.” It was also noted that ICANotes’ founders’ “deep knowledge of the behavioral health market” would help fortify Sheridan’s position in a space where streamlined patient care is increasingly in demand.
A primary driver of the overlap between digital health and behavioral health is the adoption of technology, particularly AI.
“AI and the deployment of AI is certainly taking up a meaningful share of conversation during the pre-diligence and diligence process,” said Sheridan. The team noted that AI is a focus across all their transactions, including ICANotes.
“The investments that ICANotes has made into AI solutions for their customers were an important part of our interest in the business,” the firm’s team said. “Sheridan is excited to back ICANotes and continue to push the company to provide more AI solutions that allow its customers to see more clients and process their day-to-day workflows more efficiently.”
This latest move is part of a much larger expansion strategy for Sheridan. The company has a strong portfolio of healthcare outsourced services, life sciences and manufacturing companies all supported by its eHealth investments.
Over the past five years, Sheridan (or one of its portfolio companies) has completed 21 majority investments across multiple healthcare verticals, including outsourced payor, provider and pharma services, products and manufacturing, and providers,. However, there has been consistent interest in the eHealth space due to innovation opportunities and strong returns.
Recent moves include the 2023 acquisitions of Afia, an electronic health record data services provider, and GreenpointMed, a medical billing specialist, as well as the 2025 acquisition of National Care Systems, which provides revenue cycle management software to skilled nursing and assisted living facilities.
Lastly, the Sheridan team provided an optimistic outlook for future market conditions, aligning with other industry experts’ perspectives and broader market trends.
“The market continues to be very active, with a particular interest in businesses of scale that have a good mix of growth and earnings,” the team said, remaining bullish.
