M&A daily wrap: Cognizant, Court Square, Equistone, Gen Cap America, KBS, Clearlake
Cognizant (Nasdaq: CTSH) is buying Bolder Healthcare Solutions, a privately-held provider of revenue cycle management (RCM) software to hospitals and physician practices, for undisclosed terms. RCM programs aim to integrate and automate healthcare administrative and medical data to ensure benefit eligibility and accurate billing and collections, reducing the time between delivery of service to payment received. Bolder Healthcare Solutions’ offerings are expected to expand Cognizant’s healthcare consulting, information technology and business process services into more hospitals, hospital outpatient departments, physician practices, and other specialty care providers. Healthcare software providers are increasingly attractive M&A targets to strategic buyers and private equity firms. For example, Inovalon (Nasdaq: INOV), a provider of cloud-based software for the healthcare industry, recently agreed to acquire Ability Network, a developer of Software-as-a-Service (SaaS) tools designed to simplify the administrative and clinical complexities of healthcare, from Summit Partners and other investors for $1.2 billion in cash and restricted stock.
Court Square Capital Partners is taking a majority stake in Momentum Telecom, a provider of customizable cloud-based applications including voice, video and collaboration tools designed to enhance business productivity and efficiency for direct customers and more than 500 nationwide white label and channel partners. Momentum’s senior management team is also participating in the investment. The transaction is expected to close in the third quarter, following regulatory approval. Momentum’s advisors included The Bank Street Group LLC served as financial advisor and Bradley Arant Boult Cummings LLP as legal counsel. Court Square’s advisors included SunTrust Robinson Humphrey as financial advisor and Dechert LLP as legal counsel.
Equistone Partners Europe Ltd. has closed Equistone Partners Europe Fund VI at its hard cap, with total capital commitments of $3.45 billion (€2.8 billion). Equistone completed the fundraising within four months of its launch in early November 2017. The Equistone team will make a commitment to EPEF VI alongside the institutional investors. EPEF VI will invest in European buyouts valued between roughly $60 million and $600 million,” targeting well-positioned businesses in Western Europe with high-calibre management teams and strong growth potential,” according to the private equity firm. Evercore Private Funds Group advised Equistone on the fundraising, and Clifford Chance acted as fund formation, tax, and regulatory counsel.
Gen Cap America Inc. has sponsored a buyout of CoreMedical Group, in partnership with management, for undisclosed terms. CoreMed, based in Manchester, New Hampshire, is a healthcare staffing and recruiting agency specializing in travel and permanent placement for nurses, allied health professionals and physicians. Nashville, Tennessee-based Gen Cap America has also invested in Alpha Technics and Advantage Medical Professionals.
Kellermeyer Bergensons Services, a provider of technology-enabled, integrated interior and exterior property services to commercial, industrial, retail, grocery, and multi-site customers in North America, today has acquired Emmaculate Reflections, an independently-owned provider of contract cleaning and facility support services to restaurant chains. Emmaculate Reflections will be an operating division of KBS and will continue to utilize its brand.
Private equity firm Clearlake Capital Group has acquired medical software company Provation Medical Inc. from Wolters Kluwer. For more details, see the full story.