Healthcare Services Acquisitions in 2019

Discovery Behavioral Health acquired Associated Behavioral Health Care (ABHC) of Seattle, a four-center provider of outpatient addiction and mental health services in the Puget Sound region, with the deal closing on December 31, 2019. The acquisition expands Discovery’s footprint and clinical capabilities in the Pacific Northwest, adding services such as psychiatry, psychology, TMS, chemical dependency counseling and medication management across Bellevue, North Seattle, West Seattle and Kent.

424 Capital, together with Eagle Private Capital and Plexus Capital, purchased a majority share in Practis from founder Elizabeth Pettrone and CEO John Pettrone Jr., who will remain investors and active managers. Practis is a digital marketing and SaaS provider serving independent healthcare providers (over 700 customers); the investors plan to accelerate growth, expand services, and enter new markets.

American Securities, a New York-based private equity firm, has acquired United PF Partners, the largest Planet Fitness franchisee, from Eagle Merchant Partners and JLM Financial Partners. United PF is headquartered in Austin, Texas and operates more than 160 clubs across 14 states serving over 1 million members; terms were not disclosed and the deal closed in late December 2019.

Asia Pacific Village Group Limited (APVG), owned by EQT Infrastructure IV, has entered into a Scheme Implementation Agreement to acquire 100% of Metlifecare. The deal was announced in two versions: an initial offer of NZ$7.00 per share (approx NZ$1.5bn) and a later revised SIA at NZ$6.00 per share (approx NZ$1.3bn); NZ Super (holding ~19.86%) has committed to vote in favour and the parties agreed to discontinue related litigation.

EQT Mid Market Asia (via its Mid Market Asia III fund) has invested in Health Management International Ltd (HMI), a Singapore-headquartered regional private healthcare provider. EQT will support HMI's regional expansion and capability build—investing in capacity, digitalisation and exploring potential future acquisitions to scale the group's platform across Singapore, Malaysia and Indonesia.

New Harbor Capital portfolio company FYZICAL has completed two add-on acquisitions of FYZICAL franchisees, bringing five clinics into its corporate-owned network in the Carolinas. The deal expands FYZICAL's corporate footprint to enable pilot initiatives and Centers of Excellence for the broader franchise community; New Harbor first invested in FYZICAL in 2018 and these represent the company's fourth and fifth acquisitions since that investment.

Traditions Health, a Dorilton Capital-backed hospice and home health provider headquartered in College Station, Texas, has acquired Guiding Hospice, a hospice provider based in Round Rock (greater Austin). The acquisition expands Traditions Health's geographic presence in the Austin area and brings Guiding Hospice's owners, Chris Willis and Kyle Dugan, onto the Traditions team.

Ergon Capital Partners has agreed to acquire a majority stake in Palex, the leading distributor of hospital equipment, technology and solutions in Spain and Portugal, from Corpfin Capital, the Knuth family and the management team. Corpfin will retain a minority stake alongside Ergon and Palex’s management as Ergon supports the company’s national and international growth plans.

The Speech Pathology Group (SPG), a portfolio company of Ridgemont Equity Partners, has acquired Comprehensive Autism Center (CAC), a Temecula-based provider of in-home and center-based ABA therapies serving families across Southern California. Provident Healthcare Partners served as exclusive financial advisor to CAC; transaction terms were not disclosed and the sellers were CAC founders Andrea and Chris Macken.

Audax Private Equity has recapitalized Corrona, LLC in partnership with Corrona's management team; terms were not disclosed. Great Point Partners exited its investment as Audax and management position Corrona to expand its real-world evidence registries, data capabilities and pursue further growth.

Mentha Capital will take a majority stake in the combination of Dutch occupational health providers paraDIGMA Group and BlijWerkt, creating a larger, integrated group focused on sustainable employability. The transaction (subject to approval by the Dutch Healthcare Authority) brings together complementary services and more than 400 employees and is expected to support further organic growth and acquisitions.

Care Advantage, a Richmond-based home healthcare provider and portfolio company of BelHealth Investment Partners, has acquired Team Nurse Inc., a South Boston, Virginia home health and personal care provider operating 17 locations with over 400 caregivers. The add-on expands Care Advantage's footprint to more than 40 branch locations across Virginia, Maryland, Delaware and Washington, D.C., increasing regional density and coverage across roughly 90% of Virginia.

AddSecure, a Sweden-headquartered provider of secure critical communications, has agreed to acquire the Stella Safety Phone business unit from Finnish provider Stella Kotipalvelut Oy; the deal was expected to close by the end of January 2020. The acquisition brings AddSecure into the telecare / smart care market, adding a certified alarm receiving center and products serving ~52,000 end-customers across more than 200 Finnish municipalities; AddSecure is majority-owned by Castik Capital, which backs the transaction.

Discovery Behavioral Health, a nationwide provider of behavioral health services, has acquired Casa Palmera, a nationally recognized residential treatment facility for adults with drug and alcohol addiction located in Del Mar/San Diego, California. The acquisition expands Discovery's continuum of residential and outpatient treatment capabilities and adds experienced clinical staff to support substance use and co-occurring mental health disorder treatment.

Partners Group agreed to acquire a majority stake in EyeCare Partners from FFL Partners, marking a PE-to-PE buyout of the U.S. ophthalmology and optometry services platform. EyeCare Partners is a vertically integrated network of optometry and ophthalmology practices headquartered in St. Louis that grew rapidly under FFL (reported 65% CAGR and several hundred sites) — financial terms were reported by market sources at roughly $2.2 billion.

Physical Rehabilitation Network (PRN), a Carlsbad, California–based operator of outpatient rehabilitation clinics, has acquired Team Rehab, a Portland-based integrative outpatient rehab group operating three clinics in Portland, Clackamas and Tualatin, Oregon. The deal expands PRN’s Pacific Northwest footprint (bringing its clinic count in the region to 26) and represents PRN’s first entry into Oregon.

InformedDNA, the U.S. leader in genetics services, has entered definitive agreements with TT Capital Partners, NovaQuest Capital Management, and Frist Cressey Ventures to receive a growth capital investment to scale its technology-enabled genetic services and expand its genetic counseling staff. Terms were not disclosed; InformedDNA will remain led by CEO David Nixon and has also secured a flexible credit facility from CIBC.

VirTrial, a portfolio company of Kinderhook Industries, has acquired SnapMD to integrate its enterprise telemedicine platform into VirTrial's Virtual Care Management (VCM) offering. The acquisition is intended to bolster VirTrial's decentralized clinical trial (DCT) capabilities and expand virtual care features for sponsors, sites and patients; SnapMD will operate as a subsidiary of VirTrial.

GI Alliance announced a partnership with GastroArkansas, bringing the Little Rock-based gastroenterology practice into GI Alliance's network and establishing the organization's presence in Arkansas. The deal adds 12 physicians and their staff to GI Alliance's platform as part of its targeted geographic expansion across the South-Central U.S.

MREHAB Holdings, Inc. has acquired Medical Rehabilitation Consultants, a Spokane, Washington–based provider of medical case management and utilization management services. ACT Capital Advisors acted as advisor to Medical Rehabilitation Consultants in the transaction. The target provides cost-containment and utilization management services to insurance companies, self-insured employers, third-party administrators, public programs and other clients across the United States.

Corrona, LLC has acquired HealthiVibe, LLC, a patient experience and patient-insights firm based in Arlington, Virginia. The acquisition adds HealthiVibe's global patient engagement expertise and online analytic platforms to Corrona's real-world evidence and disease-registry capabilities to better support pharmaceutical clients across the product lifecycle.

The Chartis Group has acquired The Greeley Company, a leading provider of clinical effectiveness, regulatory compliance, and physician and medical staff services. The Greeley business was owned by Keystone Capital, which completed the sale to Chartis to expand Chartis's clinical quality and physician services capabilities.

Acorn Health, a national provider of Applied Behavior Analysis (ABA) services, has acquired Behavior Therapy Specialists (BTS) in O'Fallon, Illinois. The acquisition expands Acorn Health's footprint into Southern Illinois and Northern Missouri and makes BTS a wholly-owned subsidiary to support center- and home-based ABA services for children and adults with autism.

MedSpa Partners Inc., a newly launched Canadian medical aesthetics rollup, has acquired two clinics—Cosmedica in Victoria, British Columbia and SpaMedica in Toronto, Ontario—supported by a lead investment from Persistence Capital Partners. The platform, founded by Persistence Capital Partners and Dominic Mazzone, will consolidate premium dermatology and medical spa practices across Canada to provide shared operational support while allowing clinicians to retain control of their practices.

Kadiant has acquired the Behavior Therapy business of Personal Assistance Services of Colorado (PASCO); PASCO will continue to operate its other home health and long-term support services under the PASCO brand. Terms were not disclosed. The deal expands Kadiant's ABA therapy footprint and brings PASCO's team of BCBAs into Kadiant's network.

Epiphany Dermatology announced a partnership with South Tyler Dermatology whereby Dr. Thomas Lambert and his staff will join Epiphany to expand the company's presence in East Texas. The affiliation gives South Tyler Dermatology access to Epiphany's operational infrastructure (managed care, HR, IT, marketing) while broadening Epiphany's provider network and patient access in Texas.

NMS Capital has partnered with Center for Social Dynamics (CSD) management in a recapitalization, making a substantial capital commitment to support CSD's growth. CSD, a home-based applied behavior analysis (ABA) services provider operating across Northern California, Oregon, and Hawaii, will continue to be led by founder and CEO Pete Pallares, who retains a significant ownership stake.

Kinderhook Industries completed a majority recapitalization of Long's Drugs, Inc. and PharMedQuest Pharmacy Services, combining the two on‑site and central‑fill pharmacy services providers into a single platform to serve Covered Entities (FQHCs, Ryan White clinics, STD clinics and other underserved providers). The transaction creates scale under the Avita/combined platform and is intended to accelerate growth and share best operating practices across the combined business; financial terms were not disclosed.

Waystar, a leading provider of cloud-based revenue cycle technology, has acquired Recondo Technology, a provider of AI- and RPA-powered patient access and business office automation for healthcare providers. The acquisition expands Waystar's AI and patient-access capabilities and will integrate Recondo's transaction and prior-authorization processing into Waystar's end-to-end revenue cycle platform.

US Foot & Ankle Specialists (a portfolio company of NMS Capital) has partnered with and acquired Gaston Foot and Ankle Associates in Gastonia, North Carolina. The practice will continue operating in-place and will gain access to USFAS's administrative and clinical support services as part of the integration.

Potomac Equity Partners’ portfolio company Laser MD Medspa has acquired Laser Gentle Medical Spa, adding two locations in Burlington and Natick, Massachusetts. The acquisition expands Laser MD Medspa’s footprint in Massachusetts as the platform pursues additional roll-ups and de novo openings to grow its medical spa network.

Excel Orthopedic Rehabilitation, a portfolio company of Caymus Equity Partners, has acquired Heart & Soul Rehabilitation, a New Jersey-based physical therapy clinic specializing in orthopedic and cardiopulmonary care. The acquisition, which closed on December 2, 2019, expands Excel's presence in New Jersey and is the company's second strategic add-on since its majority recapitalization in 2016.

Kriya Capital LLC, through its flagship RCM platform Innoval Global Solutions, LLC, acquired Medstat Accounts Receivable Management, Inc., a Mesa, Arizona-based medical revenue cycle management firm, effective December 3, 2019. The deal expands Kriya/Innoval's healthcare RCM footprint in Arizona and nearby markets; founder Marilynn Peters will remain as a consultant and operational leadership will continue under Kelly Peters. The acquisition was financed with Kriya Capital internal accruals and standing credit facilities.

Vision Innovation Partners, a PE-backed ophthalmology platform, has acquired Carroll Vision Center, Center for Total Eye Care and Carroll County Surgery Center in northern Maryland. The deals expand Vision Innovation Partners' Mid-Atlantic network of eye care practices and surgery centers; the platform is backed by Centre Partners.

Mitchell | Genex has acquired CompAlliance, a provider of managed care services for the workers' compensation industry, to expand its medical cost containment and clinical solutions. The deal, which was announced December 2, 2019, will broaden Mitchell | Genex's service offering (including PPO networks, medical bill review, case management and utilization review) and strengthen its position in workers' compensation, disability and group health markets; financial terms were not disclosed.

Primavera Capital Group and FountainVest Partners bought EQT Greater China’s remaining 24.78% stake in LBX Pharmacy Chain Joint Stock Company (LBX) at RMB 55.0 per share, in a transaction signed and closed on 27 November 2019. LBX is a leading discount pharmacy superstore chain founded in Hunan province that operates thousands of self-owned and sub-franchised drugstores across China; the sale represents a divestiture by EQT and a strategic ownership transition to the consortium.

The PromptCare Companies, a regional provider of specialty respiratory and infusion services, has acquired Hollywood Medical Supply from owner and CEO Robert Lichtenstein. The acquisition expands PromptCare's footprint into Florida and broadens its pediatric respiratory and specialty infusion capabilities in the Southeastern United States.

Renovus Capital Partners has recapitalized ClinicalMind, LLC to support expansion of the medical communications agency and growth of its enGauge SaaS technology. The equity financing will fund expansion of ClinicalMind’s strategic and tactical agency services and its physician-engagement and medical affairs SaaS platform; Excel Partners advised the sell-side while DLA Piper and BrownRudnick served as legal counsel.

NextGen Growth Partners announced an investment in Record Connect, Inc. on November 12, 2019 and named Entrepreneur-in-Residence Drew Daum as CEO. The investment will support Record Connect’s growth and technology investment while founder Ty Humpert remains active on the company's board to help expand its release-of-information services for hospitals, clinics, and physician offices in the Midwest.

A consortium led by private equity firms Astorg and Cinven has signed an agreement to acquire LGC, a UK-headquartered global leader in life sciences tools. The buyout will back LGC’s continued organic growth and M&A-led expansion across its standards, genomics and laboratory services businesses; financial terms were not disclosed and the transaction remains subject to regulatory approvals.

APDerm, a physician-led dermatology group based in Acton, Massachusetts, has acquired Dermatology Professionals, Inc., adding DPI's headquarters in East Greenwich, Rhode Island and a second location in North Attleboro, Massachusetts. The deal expands APDerm's footprint across New Hampshire, Massachusetts and Rhode Island and increases its network to 24 locations and 69 providers.

Schweiger Dermatology Group (SDG) has completed the acquisition of Dermatology Associates at Crystal Run (DACR), adding DACR’s two locations in Middletown and Port Jervis, New York to SDG’s network. The deal brings DACR’s team of providers into SDG as the group expands its footprint in upstate New York and centralizes practice management to allow clinicians to focus on patient care.

An investor group led by Leonard Green & Partners, in partnership with Arsenal Capital Partners and Novo Holdings A/S, has agreed to recapitalize WCG to provide resources to accelerate growth and expand capabilities in clinical trial optimization. Financial terms were not disclosed; the transaction was announced in November 2019 and expected to close in the first quarter of 2020.

Apex Physics Partners, a PE-backed medical physics platform partnered with Blue Sea Capital, has acquired Radcom Associates, a North Texas medical physics services provider headquartered in Garland, Texas. The add-on expands Apex’s footprint into the Texas market and grows the combined Apex medical physics team to 53 physicists, strengthening its services to hospitals, imaging centers and cancer centers across the region.

Epiphany Dermatology announced a partnership to bring Kansas City Dermatology into its network, expanding Epiphany's presence into the state of Kansas. The deal will give Kansas City Dermatology access to Epiphany's operational resources including managed care, HR, IT, and marketing support.

UST Global has acquired Contineo Health, a healthcare technology consulting firm that specializes in EHR optimization and value-based care solutions. The acquisition expands UST Global's capabilities across payer and provider domains and strengthens its EHR services for hospital systems and health networks across the United States.

Health Enterprise Partners led a $9.3 million Series A investment in Access Physicians to accelerate nationwide deployments of its multispecialty acute telemedicine services. The funding will support scaling of Access Physicians’ telemedicine programs, which are already deployed at 153 hospitals across 18 states and serve Fortune 500 health enterprises as well as rural and community hospitals.

InFuse Holdings Inc., backed by a Series A investment led by BroadOak Capital Partners, has acquired Cincinnati-based Horizon Infusions, founded in 1997. The financing and acquisition position Horizon as a platform for InFuse to expand a network of ambulatory infusion centers across Ohio and the Midwest.

US Foot & Ankle Specialists (USFAS), a portfolio company of NMS Capital, has acquired Harrisburg Foot & Ankle Center, a three-location podiatry practice based in Harrisburg, Pennsylvania. The acquisition expands USFAS's footprint in Pennsylvania and will keep Dr. Allan Grossman in place while integrating HFA into USFAS's administrative and clinical support infrastructure.

Stamford-based private equity firm Olympus Partners has entered into a definitive agreement to acquire Soliant Health, an education and healthcare staffing provider, from The Adecco Group. Soliant supplies therapists to K-12 schools and places travel nurses and allied health clinicians for the life sciences and healthcare markets; Olympus said the acquisition will support continued growth given strong market dynamics in special education and clinician staffing.