Middle market private equity firm GI Partners (GI) is to acquire Netsmart Technologies in partnership with Allscripts Healthcare Solutions, which will then merge its Allscripts' homecare software business unit with Netsmart.
Netsmart is the provider of software and technology solutions designed especially for the health and human services sector, enabling mission-critical clinical and business processes including electronic health records, patient management, billing, scheduling and clinical care delivery. Allscripts' homecare business is a fully integrated system for both large and small home care organizations, automating point of care processes as well as patient intake and billing. The combination of Netsmart and Allscripts' homecare business creates an electronic health record leader in the human services and post-acute spaces with full revenue cycle management and hosting capabilities.
Dave Kreter, Director of GI Partners, says: "We are excited to partner with Netsmart management to continue to build upon the market leadership they have achieved in the behavioural healthcare technology space and strategically expand the business across the post-acute landscape. This is a team we have been interacting with over the last decade and are thrilled to have signed a transaction with them. The GI team believes this combination will create an industry leader that can improve clinical results and reduce costs in many increasingly important areas of the healthcare ecosystem."
Howard Park, Managing Director of GI Partners, says: "We believe Netsmart represents an attractive investment for GI that is very much 'on strategy' with our focus on post-acute and behavioural healthcare, IT infrastructure, and verticalized healthcare software. Given our combined significant experience in the healthcare and technology sectors, GI is the ideal partner to add value to the full combined Netsmart business."
Mike Valentine, Chief Executive Officer of Netsmart, who will continue in that capacity for the combined company, says: "The GI team has substantial relevant investing and operating experience in the end-markets and industries in which Netsmart and Allscripts' homecare business serve. We look forward to our partnership with GI to further improve healthcare quality and service at lower cost."
The transaction is subject to customary regulatory and closing conditions and is expected to be completed in April 2016.
Houlihan Lokey and UBS Investment Bank acted as financial advisors. Financing for the transaction is being provided by UBS Investment Bank.
