Provista buys River Cities-backed National IPA


Provista has acquired National Intergovernmental Purchasing Alliance Company, a portfolio company of River Cities. No financial terms were disclosed. Based in Brentwood, Tennessee, National IPA is a group purchasing organization established for public agencies across the U.S.

PRESS RELEASE

Cincinnati, OH­ – River Cities announced today that its portfolio company National Intergovernmental Purchasing Alliance Company (National IPA) has been acquired by Provista, a leading supply chain improvement company and subsidiary of Novation, one of the largest healthcare GPO’s (group purchasing organizations) in the country. Brentwood, Tennessee-based National IPA is a group purchasing organization (GPO) and strategic sourcing partner dedicated to government institutions.
“One of the hallmarks of the River Cities model is the sponsorship of world-class management teams who represent absolute domain experts in their market space. Todd Abner and Ward Brown cut their teeth in the healthcare GPO world and applied that expertise brilliantly, pioneering a cooperative group purchasing model in the government sector,” says Carter McNabb, River Cities’ managing director and member of the National IPA Board of Directors.
The agreement combines the best-in-class procurement process of National IPA and Provista’s value from approximately $43 billion in annual purchasing volume. This combination will bring value and choice to public agencies across the United States.
“We are excited to bring these two organizations together and combine the respective talents, process, and size to accelerate the value to both our participating agencies and our supplier partners. In a market that has become disparate and highly competitive this agreement solidifies us as the market leader and ensures maximum value to its respective customers,” says Todd Abner, president of National IPA.
The combined organization will use a diverse portfolio of products and services from leading national suppliers to drive down costs in the Public Sector market.
“The leadership team at National IPA brings significant growth opportunities to our organization in the Public Sector market. This acquisition demonstrates commitment to our existing education and corporate customers by leveraging relationships across both organizations,” says Dan Thomas, president and CEO of Provista.
By leveraging a highly scalable and capital efficient business model, National IPA achieved a high enterprise value to invested capital ratio, making the Company an ideal fit for a strategic partner like Provista. The sale of National IPA represents River Cities’ 12th successful exit since 2010.
About National Intergovernmental Purchasing Alliance Company
National Intergovernmental Purchasing Alliance Company (National IPA) is a cooperative purchasing organization established for public agencies across the United States with the specific purpose of reducing procurement costs by leveraging the volume of 20,000 customers in the areas of:
• State Government
• County Government
• City/Local Government
• Primary Education Systems
• Higher Education Systems
• Healthcare
• Nonprofits
• And other agencies for Public Benefit
For more information on the cooperative, visit www.nationalipa.org.
About Provista
Based in Irving, Texas, Provista is part of a family of companies that includes VHA, Novation and Aptitude. Together they offer a variety of advisory, solution, service and technology products designed to lower costs and increase efficiency in healthcare, education, hospitality, corporate and government markets. Provista is dedicated to strengthening the financial and operational performance for more than 36,000 customers nationwide by leveraging approximately $43 billion in annual purchases. For more information on Provista visit Provistaco.com.
About River Cities Capital Funds
River Cities invests in world-class entrepreneurs − backing progressive, proven leaders in the markets of healthcare and information technology. A consistent, cohesive team has honed its strategy over four prior funds with compelling performance. River Cities seeks to be a business partner first and a capital provider second, investing significant human capital to leverage its domain expertise and a network of thought leaders assembled over the last 20 years. With more than $500 million of capital raised and a consistent track record of success, River Cities has established itself as a preferred source of growth capital. The Firm, located in Cincinnati, OH and Raleigh, NC, is actively seeking new investments for its fifth fund. For more information, please visit rccf.com.