Healthcare Services Acquisitions in 2015

ATI Physical Therapy announced that Attain Therapy + Fitness has joined the ATI organization, adding 10 outpatient physical therapy clinics in the Springfield, Massachusetts area. The acquisition brings Attain's specialized hand therapy, sports and fitness training, and programs for at-risk populations into ATI's national footprint; BellMark Partners advised Attain on the partnership.

Welltok, the operator of the CafeWell health optimization platform, acquired Silverlink, a healthcare consumer communications company, to extend its multi-channel consumer engagement and targeted outreach capabilities. The acquisition was supported by $45 million in new funding led by Georgian Partners, EDBI and Flare Capital Partners to support the purchase, product development and market expansion.

symplr, a Houston-based SaaS provider of healthcare compliance and credentialing solutions, completed a recapitalization led by Pamlico Capital alongside existing investors including The CapStreet Group. The investment will provide capital to expand symplr's solution portfolio and support organic and acquisitive growth; terms were not disclosed.

Webster Capital-backed portfolio company Behavior Health Holdings acquired MedMark Services Inc., combining MedMark with its BAART subsidiary to create the third-largest methadone treatment provider in the U.S. Fifth Street Asset Management led a $130 million one‑stop financing facility to refinance BAART and support the add-on acquisition of MedMark; the financing included investments from Fifth Street Finance Corp. and Fifth Street Senior Floating Rate Corp.

Fallon Health, through its subsidiary UltraBenefits, has acquired Group Insurance Service Center, Inc. (GISC), a third-party administrator based in Pembroke, Massachusetts. The acquisition adds roughly 17,000 members to Fallon's self-insurance business (expanding UltraBenefits' membership from 42,000 to 59,000) and strengthens the organization's capabilities in the self-insurance/TPA marketplace.

Cegedim, through its U.S. subsidiary Pulse Systems, Inc., signed an agreement to acquire the U.S.-based Practice Management business of Nightingale Informatix Corporation, including the assets of Medrium, Ridgemark, Secure Connect and Northern Health Products. The acquired activities generated approximately €3.3 million in annual revenue and the deal was financed with internal financing to strengthen Cegedim's cloud practice management position in the United States.

Dublin-based clinical research group Venn Life Sciences will acquire Netherlands-based Kinesis Pharma for an initial consideration of €3.6 million, with up to €6.5 million payable including performance-related earnouts. The acquisition expands Venn’s early-stage drug development consultancy capabilities (Kinesis has ~60 employees and a presence in Singapore) and is intended to drive cross-selling of downstream services.

MEA|NEA has acquired The White Stone Group, Inc. to combine complementary HIPAA-compliant health information exchange and healthcare communication management solutions into a single integrated platform. The deal expands MEA|NEA’s capabilities across medical and dental markets and maintains operations in Norcross, Georgia and Knoxville, Tennessee.

Priority Ambulance, a Knoxville-based national EMS operator and portfolio company of Enhanced Equity Funds, has acquired Atlanta-based Central Emergency Medical Services, Inc. and Central Air Ambulance. The deal expands Priority's geographic footprint into Georgia, adds air ambulance capabilities, and increases its patient transport network across the Southeast.

Sharps Compliance Corp., a Houston-based medical, pharmaceutical and hazardous waste disposal company, has acquired Alpha Bio/Medical Services, a pickup service headquartered in Pennsylvania that also operates in Maryland and Ohio. Sharps said the acquisition broadens its East Coast route-based footprint and coincides with the launch of a new truck-pickup service in major Texas cities.

Physicians Interactive (PI) has acquired Waltham, Massachusetts-based Quantia Communications, the operator of physician social network QuantiaMD, for an undisclosed amount. The deal adds a peer-to-peer physician network to PI’s digital health platform; all ~60 Quantia employees will remain in Waltham as PI integrates the community into its suite of physician- and consumer-facing offerings.

Emdeon Inc. has entered into a definitive agreement to acquire Altegra Health for approximately $910 million in cash. The acquisition combines Altegra's risk adjustment, quality analytics and member engagement platform with Emdeon's Intelligent Healthcare Network and revenue-cycle/payment solutions to expand capabilities for value-based care and improve payer/provider performance.

Mediware Information Systems, Inc. has acquired AlphaCM, Inc., a provider of software and services for the behavioral and mental health market. The acquisition expands Mediware's capabilities and footprint across mental health, developmental disability and substance abuse care by integrating AlphaCM's payer- and provider-focused solutions with Mediware's existing community services platform.

MedExpress has acquired Bridgeport Express Care, a family-owned urgent care and family medicine clinic in Bridgeport, West Virginia. The deal expands MedExpress's local footprint and adds urgent care, family/sports medicine and employer health services to its network.

Boston-based private equity firm Mansa Capital led a management buyout of healthcare technology and business services provider Accreon, Inc., with three senior Accreon executives (Eric Demers, Martin Ferguson and Michael Lavigne) participating alongside Mansa. The transaction — advised on the sell-side by 7 Mile Advisors — is intended to support Accreon's U.S. growth and advance a planned leadership succession while expanding activity in Atlantic Canada.

Hammond, Kennedy, Whitney & Company, Inc. (HKW) completed a recapitalization of GMD Distribution Inc. and Ophthalmic Direct LP on March 24, 2015. GMD, based in Oakville, Ontario, is a distributor of specialty ophthalmic pharmaceuticals to Canadian clinics and pharmacies; the transaction was supported by management and the company was represented by NewPoint Capital Partners and CCC Investment Banking.

ADCS Clinics (ADCS) has acquired Denver Dermatology Consultants, P.C., a three-location dermatology practice serving Denver, Thornton and Wheat Ridge, Colorado. The transaction expands ADCS's presence in the Denver market as the dermatology platform continues to grow its national footprint; ADCS operates over 100 clinics and has acquired more than 40 offices in the past 18 months.

Roper Industries, Inc. acquired Strata Decision Technology, a Chicago-based provider of cloud-based financial analytics and performance software for healthcare providers. Strata will operate in Roper's Medical segment with its management team remaining in place; the seller was VSS Structured Capital Fund II, L.P., managed by Veronis Suhler Stevenson.

Francisco Partners has agreed to recapitalize eSolutions, a Minneapolis-based provider of healthcare revenue cycle management SaaS and analytics. TripleTree advised eSolutions (and selling investor WestView Capital Partners) on the transaction, which is expected to close in Q1 2015 and will support eSolutions’ growth and expansion of analytics and payment enablement capabilities.

Centene Corporation has acquired LiveHealthier, a Bethesda-based provider of technology- and services-based health management and engagement solutions for large employers, unions and government organizations. The acquisition brings LiveHealthier’s behavior-change, telehealth and condition-management capabilities into Centene’s suite of offerings to expand its consumer engagement and population health services.

ADCS Clinics has completed the acquisition of Dermatology Associates of Northern Michigan, a Petoskey, Michigan dermatology practice led by Dr. Murray Cotter. The deal expands ADCS's national footprint in Michigan and adds surgical and cosmetic dermatology capabilities to its network of over 100 clinics and practice-management services.

PAR Excellence Systems, a Cincinnati-based provider of healthcare inventory management solutions, has acquired NotiSphere, a Manhattan Beach-based provider of medical inventory recall notice tracking software. The acquisition integrates NotiSphere's recall-management platform into PAR's portfolio to improve recall communications, enhance patient safety, and drive efficiency across provider and manufacturer workflows.