MedAssurant Buys Catalyst
Middle-market M&A is beginning to pick up after massive corporate mergers.
September 15, 2009
MedAssurant Inc., a privately-held, Maryland-based healthcare data firm, bought Georgia-based Catalyst Technologies.
Terms of the deal were not disclosed and MedAssurant chief executive Keith Dunleavy declined to offer specifics.
However, Dunleavy told the M&A Journal, “we will consider other [deals] that demonstrate a benefit.” Dunleavy added that the company, which already operates in all 50 US states, expects to benefit from Obama administration mandates both announced and planned as the healthcare sector aims to better-organize and digitize client information.
Now, Dunleavy said, the combined entities have more than 200 clients; he declined to identify how many MedAssurant had prior to the deal and said there is some customer overlap already between the two merged firms.
Previously, the company accepted an investment from André Hoffmann, a private investor and vice-chairman of Roche Holdings Ltd for $175 million, increasing his position in the company to just over 15%, and making him one of its largest shareholders.
No debt or outside financing was used in the deal. Skadden, Arps, Slate, Meagher & Flom served as advisors to MedAssurant in association with this transaction. Harris Williams & Co. and Greenberg Traurig served as advisors to Catalyst Technologies in association with this transaction.
Increasingly, middle market firms have either hired bankers or developed independently to serve what is expected to be an increase in the healthcare services M&A space for smaller companies.
Recently, Morgan Joseph and Moelis & Co. brought on healthcare professionals and Houlihan Lokey veterans left that firm to form Edge Healthcare Partners.
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