Francisco Partners' eSolutions is purchasing data analytics firm RemitDATA Inc. The acquisition will help the target expand its reach beyond existing verticals within the healthcare sector. Financial terms of the deal were not disclosed.
Founded in 2000, RemitDATA is a healthcare technology company providing comparative data analytics. The target has offices in Memphis, Plano, Texas and Lexington, Kentucky. RemitDATA’s technology is intended to help businesses improve their business operations. The target will allow eSolutions to diversify its tools within the ambulatory, ambulatory surgical center, and hospital-owned physician markets.
“RemitDATA's technology will provide significant upgrades to our customers' reporting and analytics services," states eSolutions CEO Gene Creach. "RemitDATA fits perfectly into our existing customer base, while also providing a featured service for the ASC market."
Headquartered in Overland Park, Kansas, eSolutions provides data analytics and workflow automation products to healthcare providers of all sizes. Founded in 1999, the Francisco Partners-backed buyer now touts a customer base of more than 2,400 organizations using the firm’s revenue cycle management tools and cloud-based software. eSolutions’ technology helps to manage claims and billing, eligibility, denials and audit management, and advanced reporting.
Francisco Partners is a San Francisco-based technology-focused firm that has raised more than $10 billion in capital to date. Francisco Partners received Mergers & Acquisitions Private Equity Firm of the Year award for 2016. The PE firm acquired SmartBear Software; purchased Sandvine Corp. through portfolio company PNI Canada Acquireco; and bought Dell's software unit before Dell acquired EMC Corp. for $67 billion. Morrison & Foerster LLP is acting as legal counsel to Francisco Partners and eSolutions.
As businesses look for analytics to drive better efficiencies and sales, middle-market buyers are continuing to invest in the tech sector. Other deals involving big data and analytics providers include: The Carlyle Group's (Nasdaq: CG) acquisition of consumer data provider Claritas from Nielsen (NYSE: NLSN); HIG Capital’s deal to buy NCI Inc., an IT and professional services company for the municipal sector.