Advantage Capital Partners, a venture capital and small business finance firm, has provided USD3.15m in financing to Current Solutions, a wholesale distributor of electrotherapy devices
Advantage Capital Partners, a venture capital and small business finance firm, has provided USD3.15m in financing to Current Solutions, a wholesale distributor of electrotherapy devices and accessories to medical supply organisations throughout the US and Canada.
The funding, made in connection with the Texas Certified Capital Company (Capco) programme, has enabled Current Solutions to acquire Koalaty Products and will support the company’s move from Tampa, Florida to Austin, Texas.
‘We’re excited about the tremendous opportunity to grow this company in Texas,’ says Glynn Bloomquist, chief executive and president of Current Solutions. ‘Pain management is a segment of the overall health care industry that continues to get the attention of a growing number of therapists, doctors and chiropractors.’
Current Solutions was formed in July 2009 to acquire Koalaty Products, a provider of electrical stimulation products used for pain management, rehabilitation and physical therapy. Koalaty also distributes electrodes, orthopedic pillows, braces, batteries and topical analgesics.
Current Solutions plans to relocate the headquarters and open a second distribution facility in Austin by the end of the year. The company will also hire approximately 16 full-time employees over the next 12 months.
‘The Current Solutions management team has a deep level of experience in Austin and is well-prepared for this new business venture,’ says Les Alexander, senior vice president at Advantage Capital Partners. ‘Given the shift toward non-invasive rehabilitation devices and at-home physical therapy, we believe there is an opportunity for the company to build upon Koalaty’s already successful platform.’
Advantage Capital’s investment in Current Solutions was made in connection with the Texas Capco programme, which encourages the flow of investment capital to promising companies located in the state. The companies, in turn, develop innovative technologies and services, create jobs and increase economic activity throughout their communities.
Focus Strategies, Current Solutions management and other individual investors provided an additional USD950,000 to the company for startup capital and to finance the acquisition of Koalaty.
