Genstar Capital, a private equity firm that focuses on investments in the software, healthcare, financial services and industrial technology industries, has made an investment in Netsmart Technologies.
Genstar Capital will provide the capital and strategic software and healthcare expertise to help Netsmart manage its growth and expand its solutions to meet the needs of its customers.
Headquartered in Great River, New York, Netsmart provides software as a service, self-hosted software solutions and project implementation services to more than 18,000 customer organisations in all 50 states, including 350,000 care providers and 40 state-level mental health systems.
Netsmart customers include mental health and substance abuse treatment agencies, psychiatric hospitals, private and group mental health practices, public health departments, intellectual and developmental disabilities organisations, vital records offices and managed care organisations.
"We are excited to be partnering with the management team of Netsmart Technologies, the number one software provider for the behavioural health, public health and substance abuse markets. Netsmart’s deep domain expertise combined with their comprehensive software solutions provide significant value to its customer community today by increasing user productivity and decreasing costs," says Mark Hanson (pictured), managing director, Genstar Capital. "The capital investment will allow Netsmart to further accelerate its leadership position through expansion of its go-to-market capabilities and additional add-on acquisitions to drive incremental functionality and value for its customers."
James L. Conway, Netsmart chief executive officer, adds: "Genstar’s long-term focus and deep software and healthcare experience are a perfect fit to take Netsmart, our customers, and our industry leadership to the next level. Their capital investment, combined with the strong expertise in healthcare IT strategy and management they will bring to our board of directors, will add tremendous value as we continue to develop customer-focused solutions. The Netsmart team is excited by this opportunity, and we look forward to working closely with our new partners at Genstar."
Genstar received legal counsel from Latham & Watkins. Financing for the transaction was provided by Wells Fargo Capital Finance and Ares Capital.
