Private Equity Deal Spotlight | Weekly Update

Health care continues to drive private equity (“PE”) activity, creating opportunities for investors and traditional health care providers. Transactions in the health care space are especially complicated, layering health care regulatory and reimbursement considerations on top of a complex securities, antitrust, privacy and security framework.

Hall Render’s PE team of attorneys and advisors leverage the strength and depth of our bench to navigate and efficiently execute PE transactions. The summary below includes highlights of recent PE deals and legislative updates.

• Modular Devices, backed by O2 Investment Partners, announced a strategic growth investment in Transcend Imaging. Transcend Imaging is a leading provider of mobile MRI imaging labs in the United States. Modular Devices specializes in mobile and modular medical imaging equipment, as well as cleanroom solutions, across the country. This partnership enhances Modular Devices’ presence in the mobile MRI sector and expands its product offerings. O2 Investment Partners is a Bloomfield, Michigan-based PE firm focused on investing in lower middle-market niche services, technology and select industrial companies.
• GovCIO recently announced its agreement to acquire SoldierPoint Digital Health, LLC, a provider of innovative, secure and scalable digital health solutions that empower organizations to expand access to care, improve outcomes and modernize health care delivery for Veterans. GovCIO is a leading provider of advanced technology solutions and services for the federal government, employing over 3,300 individuals and generating more than $1 billion in revenue. The partnership is intended to promote Veterans’ access to remote health care services. GovCIO is backed by Welsh, Carson, Anderson & Stowe, a PE firm headquartered in New York City with investments in the technology and health care industries.
• SimiTree recently launched its health tech platform called SARA (SimiTree Assessment Review AI). SARA is a proprietary artificial intelligence platform aimed at enhancing clinical documentation reviews, improving coding accuracy and increasing operational efficiency for home health agencies. SimiTree, a portfolio company of Sheridan Capital Partners, is a leading provider of technology-enabled specialty revenue cycle management, coding, consulting, staffing solutions and managed services for home health, hospice and behavioral health organizations. Sheridan Capital Partners is a Chicago-based PE firm specializing in lower middle-market buyouts and growth equity investments in the U.S. and Canada.
• TA Associates has recently announced a strategic growth investment in HealthMark Group. In connection with this transaction, TA Associates will become the new lead investor in HealthMark, with HealthMark’s management team and existing investor Ridgemont Equity Partners retaining significant equity. HealthMark is a prominent provider of clinical information exchange solutions for health care providers across the nation. TA Associates is a PE firm headquartered in Boston, MA, dedicated to scaling growth in profitable companies in the technology, health care, financial services, consumer products and business services industries. Ridgemont Equity Partners, based in Charlotte, NC, is a middle-market PE firm providing buyout and growth capital to industry-leading companies in the business services, industrials and health care sectors.

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