Healthcare Services Acquisitions in 2018

3M has entered into a definitive agreement to acquire the technology business of M*Modal for an enterprise value of $1.0 billion, expanding 3M Health Information Systems' capabilities in conversational AI and clinical documentation. The acquired business, based in Pittsburgh, Pennsylvania, generates approximately $200 million in annual revenue and about 750 employees are expected to join 3M; M*Modal will retain its transcription, scribing and coding services business.

Boyne Capital has acquired a majority interest in Infusion Associates Management, Inc. (IAM), a newly formed management services organization that will oversee Infusion Associates' ambulatory infusion clinics. The partnership keeps Dr. Khan Nedd in a significant ownership and clinical leadership role and is intended to support capability expansion and geographic growth across Michigan and the Midwest.

Pittsburgh-based Curavi Health Inc., a UPMC Enterprises–backed telemedicine provider, has acquired Long Island City–based TripleCare, a telemedicine services provider for post-acute and long-term care facilities. The deal expands Curavi’s network and capabilities in the skilled nursing/post-acute market and positions the combined company to serve nearly 100 facilities across 14 states.

Solara Medical Supplies, backed by Linden Capital Partners, has acquired Huey's Home Medical, an Illinois-based direct-to-patient durable medical equipment and supplies provider. The acquisition expands Solara's Midwest footprint and strengthens its direct-to-patient diabetes and home medical equipment distribution capabilities.

Pharos Capital, through its Family Treatment Network (FTN) platform, has acquired ABA of North Texas, an outpatient autism services provider based in Plano and McKinney, Texas. The add-on expands FTN's behavioral health and applied behavior analysis (ABA) service offerings in North Texas; terms were not disclosed.

Latticework Capital Management, a Dallas-based healthcare-focused private equity firm, has completed a recapitalization of Xpress Wellness Urgent Care, the largest urgent care provider to secondary markets in Oklahoma and Kansas. Financial terms were not disclosed; Xpress operates ten locations, employs roughly 130 professionals, and offers urgent care, primary care, occupational medicine and related services.

Funds managed by WindRose Health Investors completed a recapitalization of Traditions Behavioral Health (TBH), a West Coast provider of permanent outsourced physician psychiatric services. WindRose partnered with TBH's executive team (founder and CEO Gary A. Hayes remains in place) to provide growth capital to expand into new U.S. markets, broaden services and increase its network of psychiatrists.

Anne Arundel Dermatology Management (ADM), a portfolio company of NMS Capital, has affiliated with Rock Creek Dermatology and Skin Cancer Center LLC, a two-clinic dermatology practice serving Silver Spring and Urbana, Maryland. The affiliation makes Rock Creek part of ADM’s platform—bringing administrative, IT, revenue cycle, and clinical support—while Dr. Meghan Mitchell will continue to lead the practice as part of ADM’s expanding Maryland footprint.

Amedisys, Inc. acquired Bring Care Home, a privately owned personal care services provider serving the North Shore, Merrimack Valley and Greater Boston areas of Massachusetts. The deal (announced/closed in 2018) expands Amedisys’ personal care footprint in northeastern Massachusetts; the sell-side was advised exclusively by American Healthcare Capital.

St. Louis-based EyeCare Partners completed acquisitions of three Kentucky ophthalmology practices — John-Kenyon Eye Centers, Bennett & Bloom Eye Centers, and McPeak Vision Partners — expanding its footprint in Louisville and southern/western Kentucky. The deals bring multiple doctors and locations into EyeCare Partners’ network to broaden patient access to ophthalmology and refractive services across the state.

Two Labs, a Columbus-based pharmaceutical services company, has acquired Pennside Partners Ltd., a Wyomissing-based provider of market insights, benchmarking and competitive intelligence for the pharmaceutical, biotech and medical device sectors. The acquisition expands Two Labs' commercialization and lifecycle services capabilities; Pennside employees will remain at their Wyomissing, Pennsylvania office.

Clearlake Capital Group has entered into a definitive agreement to acquire symplr, a leading healthcare governance, risk and compliance (GRC) SaaS platform, from Pamlico Capital and The CapStreet Group. Clearlake views symplr as a platform for growth to accelerate product and acquisition-led expansion across healthcare provider and payer markets.

Royal Philips has acquired Vancouver-based Blue Willow Systems, a developer of a cloud-based senior living resident safety platform that includes Bluetooth-enabled wearables, real-time location tracking and enterprise reporting. The acquisition augments Philips' CarePoint 6.0 senior living platform by adding SaaS-based resident and staff management capabilities; financial terms were not disclosed.

Clinigen Group PLC has acquired Clinical Supplies Management (CSM), a Malvern, Pennsylvania–based provider of clinical-trial drug packaging, labeling and logistics, from Great Point Partners. The deal includes an initial $150 million cash consideration (cash-free, debt-free) plus up to $90 million in contingent cash tied to EBITDA performance, and is intended to expand Clinigen's global supply and distribution network, particularly in Continental Europe.

Sonas Home Health Care, a portfolio company of Boyne Capital, has acquired Advanced Nursing Solutions, a Tampa-based pediatric home-care provider. The deal expands Sonas's pediatric home-health footprint in Florida and strengthens its position among the state's largest pediatric home-care providers.

ADL Home Care, a private-duty home-care provider serving Southwest Michigan since 1995, was sold by founders Gerry and Marian Quill to Home Sweet Home In-Home Care. Calder Capital served as exclusive M&A advisor on the transaction. The new owner will continue providing local in‑home care services to ADL's clients in the Battle Creek / Kalamazoo area.

Sotera Health LLC, a PE-backed global provider of sterilization and laboratory services, has acquired Gibraltar Laboratories, a family-owned contract microbiology and analytical chemistry testing firm based in Fairfield, New Jersey. The acquisition — advised by Capstone Partners — expands Sotera/Nelson Labs' testing capabilities and geographic presence in the pharma and medical device markets.

International private equity firm Cinven has completed the final sell down of its remaining shares in Nasdaq-listed Medpace, realising its investment from the Fifth Cinven Fund. Medpace, a Cincinnati-based global contract research organisation (CRO), expanded internationally and grew its workforce substantially under Cinven's ownership before its August 2016 IPO and subsequent sell downs, with the final sell down achieved at a significant premium to the IPO price.

Anne Arundel Dermatology Management (ADM), a portfolio company of New MainStream Capital, has acquired Knoxville Dermatology Group, P.C., a long-established dermatology practice in East Tennessee. The deal expands ADM's regional footprint into Tennessee and adds to its growing platform of clinic locations and providers supported with centralized administrative services.

Physical Rehabilitation Network (PRN), a privately held therapy network, has acquired Highline Physical Therapy, adding five outpatient clinics and one inpatient setting in South King County, Washington. The acquisition expands PRN’s Washington footprint to 15 outpatient clinics and one inpatient clinic and secures continuity of care under PRN’s regional leadership while preserving the Highline team and brand values.

Charterhouse Capital Partners has made an investment in Funecap Groupe, the second-largest funerals company in France, alongside founders Thierry Gisserot and Xavier Thoumieux and the company's management team. The capital will support Funecap's buy-and-build strategy and further consolidation of the fragmented French funeral services market as the business continues its organic and inorganic growth.

Encore Textile Services, a portfolio company of Pacific Avenue Capital Partners, has acquired San Diego-based Emerald Textiles, combining two of the largest independent healthcare linen service providers in California. The transaction creates a larger West Coast platform (five locations) to better serve regional hospital and healthcare customers and supports Pacific Avenue's strategy of scaling the Encore platform through add-ons and organic growth.

KEPRO, a Harrisburg-based care management organization, has acquired Health Information Designs (HID), a U.S. vendor of pharmacy administrative services and healthcare analytics. The acquisition expands KEPRO's pharmacy management and analytics capabilities, adding HID's prior-authorization, drug utilization review and decision-support solutions (HID serves 39 clients and more than 18 million covered lives).

iContracts, a Bridgewater, New Jersey-based provider of cloud-based contract, policy, and revenue management solutions, has acquired PolicyMedical, a Toronto-based provider of cloud-based policy lifecycle management for healthcare. The deal combines PolicyMedical's policy management capabilities with iContracts' PolicyStat solution to strengthen the combined company's leadership in healthcare policy and compliance management.

Consolo Services Group, a Lexington, Kentucky-based provider of SaaS health IT solutions for hospice and palliative care, has acquired ADS Data Systems, a Stevenson, Maryland-based SaaS provider of adult day care software and services. The acquisition will allow Consolo to expand its post-acute care footprint by leveraging ADS's cloud-based platform while ADS's management and staff remain in place; Consolo had previously received a strategic investment from private equity firm Bluff Point Associates.

New Capital Partners, a Birmingham-based private equity firm, has acquired Collect Rx, a Bethesda, Maryland–based revenue cycle management (RCM) provider. The deal (terms undisclosed) will leverage NCP's healthcare experience to broaden Collect Rx's customer base, enhance service lines and scale the business; Oxford Finance served as lender and Berkery Noyes advised Collect Rx.

Pinnacle Dermatology has entered the Michigan market by acquiring the dermatology practice of Dr. Audrey Bruell in Livonia, Michigan. The transaction brings Dr. Bruell and four additional clinical staff into Pinnacle’s network, expanding the platform to 36 providers and 22 locations and supporting Pinnacle’s geographic growth strategy using its shared-services model.

Pinnacle Dermatology has acquired Skin, Vein & Cosmetic Surgery Clinic in Munster, Indiana. Dr. Ahmad Fathi and his team will join Pinnacle and will continue to practice at the Munster location while Pinnacle adds an additional dermatologist, Dr. Olga Radkevich-Brown, as part of its Midwest/Indiana expansion.

Mitchell International, a San Diego–based provider of claims technology and data solutions, has acquired Medical Consultants Network (MCN), a national independent medical exam (IME) and physician peer review services provider founded in Seattle. The acquisition expands Mitchell’s medical management capabilities by integrating MCN’s national provider network and IME/peer review services with Mitchell’s bill review and claims analytics to better serve payors and P&C/customers.

Epiphany Dermatology has expanded into Iowa through a partnership with Iowa Dermatology, Inc., a Pella-based dermatology practice founded by Dr. Jennifer Palmer. Under the agreement, Iowa Derm's providers and support staff have joined Epiphany to gain operational resources and support while Epiphany grows its multi-state provider network.

MedExpress (an Optum/UnitedHealth-affiliated urgent care operator) has acquired a Physicians Immediate Care clinic in Nebraska. The transaction was advised by a 7 Mile banker (completed while at another firm).

ResMed has entered into a definitive agreement to acquire HEALTHCAREfirst, a provider of EHR software, billing and coding services, and analytics for home health and hospice agencies. The acquisition will complement ResMed's Brightree software portfolio and expand its capabilities in post-acute/home health technology; financial terms were not disclosed.

US Fitness, a multi-brand operator of high-amenity health clubs (Onelife Fitness, Sport & Health, Crunch franchise locations), received a majority investment from Delos Capital with family office HRS Management investing alongside. New Evolution Ventures sold its interest; the Galiani brothers and CEO John Cristiano retain a significant stake as the company plans accelerated expansion, investing $50 million and opening multiple new clubs over the next five years.

Affiliates of Palladium Equity Partners completed the sale of the parent of Jordan Health Services to Kelso & Company and Blue Wolf Capital Partners. The buyers combined Jordan with Great Lakes Caring and National Home Health Care to create a large national home-based care platform serving tens of thousands of patients and employing thousands of caregivers across multiple states.

Pinnacle Dermatology, a portfolio company of Chicago Pacific Founders, has acquired Spencer Dermatology Associates, a dermatology practice based in Crawfordsville, Indiana. The providers from Spencer Dermatology — including Dr. Linda Spencer, Dr. Rebecca Bushong and NP-C Kay Nannet — will join Pinnacle; no financial terms were disclosed. The transaction expands Pinnacle's footprint in Central Indiana as part of its Midwest growth strategy.

Adfinitas Health acquired Advanced Inpatient Medicine (AIM), a regional hospitalist group based in northeastern Pennsylvania, to expand its geographic footprint into additional hospitals and post-acute facilities. AIM’s founder Dr. Boyle will remain a minority owner and continue leading the practice, which has nearly 50 employees; Chesapeake Corporate Advisors served as Adfinitas’s exclusive financial advisor on the transaction.

Blackstone announced it will acquire the Center for Autism and Related Disorders (CARD), a leading provider of applied behavior analysis (ABA) therapy for children and adults with autism. CARD Founder and CEO Dr. Doreen Granpeesheh and management will reinvest alongside Blackstone, which said it will support expansion of clinics, people, technology and research.

Frontage Laboratories Inc., a global contract research organization based in Exton, Pennsylvania, acquired Concord Biosciences (formerly Ricerca Biosciences), a preclinical CRO near Cleveland, Ohio. The acquisition adds Concord’s preclinical, toxicology, bioanalytical and agrochemical testing capabilities to Frontage’s early-stage product development services, broadening its service offering across pharmaceutical, agricultural and animal health markets.

SCI Solutions has acquired DatStat to combine its patient access and care coordination software with DatStat's digital patient engagement and clinical research data-collection tools. The acquisition creates an integrated patient access and engagement offering for providers and research institutions, with the combined company headquartered in Seattle. Financial terms were not disclosed.

Great Hill Partners completed a majority recapitalization of Vatica Health, with participation from Vatica’s leadership team. The investment will support geographic expansion, sales and marketing growth, and product development to scale Vatica’s provider-centric risk adjustment and clinical quality platform.

ncgCARE, a national network of behavioral healthcare providers, has acquired Grace Harbour, an outpatient behavioral health provider based in Peachtree City, Georgia. The deal expands ncgCARE's provider network into Georgia and brings Grace Harbour's seven office locations and evidence-based outpatient services under the ncgCARE umbrella.

NexPhase Capital has recapitalized Gulf Coast Pain Institute (GCPI); Brown Gibbons Lang & Company served as exclusive financial advisor. The investment launches a national interventional pain management platform called Clearway Pain Solutions Institute that will pursue acquisitions and organic growth across the U.S.; GCPI (founded 2013) operates 11 locations in northwest Florida and offers interventional and non-interventional pain management plus ancillary services.

Kinderhook Industries announced a growth investment in StudyKIK, partnering with founders Matt Miller and Jerome Chiaro to accelerate the patient-recruitment company's growth. StudyKIK, headquartered in Costa Mesa, California, provides social-media-driven patient recruitment and retention solutions for clinical trials and will work with Kinderhook to scale its technology and market penetration.

AXA has acquired Chicago-based Maestro Health, a technology-enabled benefits administration platform, and will operate it as a wholly-owned subsidiary to support AXA's payer-to-partner strategy. Maestro Health, founded in 2013, has more than 300 employees and serves mid-size and large U.S. employers, currently covering over 1 million lives.

NuVasive, Inc. acquired Safe Passage Management, LLC (SafePassage), a provider of intraoperative neurophysiological monitoring (IONM) and EEG services across the eastern United States. The acquisition expands NuVasive Clinical Services' IONM capabilities and scale, adding SafePassage's ~12,600 annual IONM cases and clinical staff to NuVasive's network of neurophysiologists and oversight physicians.

Los Angeles-based investment firm Corbel Capital Partners acquired Portland, Oregon-based respiratory homecare provider Northwest Medical Inc. on March 9, 2018. Corbel will provide capital and resources to accelerate Northwest Medical’s growth and support its delivery of respiratory equipment, setup, and patient education across Washington, Oregon and Alaska.

Deaconess Associations, Inc. has made a growth capital investment in LifeSpring In-Home Care Network to support the company's regional expansion and pursue additional acquisitions. LifeSpring, headquartered in Norman, Oklahoma, provides home health, hospice and private duty services across 27 Oklahoma counties and employs more than 250 people.

Hitachi Healthcare Americas Corporation, a subsidiary of Hitachi, Ltd., has agreed to acquire VidiStar, LLC, a Greenville, South Carolina-based developer of a cloud-based diagnostic viewer and structured reporting solution for medical imaging. The acquisition is intended to expand Hitachi's healthcare informatics, structured reporting and analytics capabilities to improve workflow and decision support for providers performing diagnostic ultrasound and other imaging exams; VidiStar will retain its Greenville headquarters and employees will join Hitachi Healthcare Americas.

VSS, a private investment firm, made a growth investment in Caravan Health, a Kansas City-based provider of value-based care advisory services that helps hospitals and physician practices participate in Medicare ACOs. Terms were not disclosed; VSS said it will support Caravan Health with resources to invest in new products, services and technology to expand its value-based care offerings.