Silver Oak Services Partners has sold its stake in Convergent Resources to ACT Holdings. No financial terms were disclosed. Convergent Resources is a provider of outsourced receivables management and revenue cycle management services for the utility, telecom, financial services and healthcare industries.
Evanston, IL, May 20, 2014 – Silver Oak Services Partners, LLC announced today that it has completed the sale of its equity interest in portfolio company Convergent Resources to Account Control Technology Holdings, Inc. (“ACT Holdings”), a Delaware-based provider of business process outsourcing and collection services.
Founded in 1998, Convergent Resources (“Convergent” or the “Company”) is one of the largest U.S. providers of outsourced receivables management and revenue cycle management services to the utility, telecom, financial services and healthcare sectors. The Company offers a comprehensive suite of services, including first-party outsourcing, third-party early and late stage collections, insurance follow-up, extended business office services and patient access services for hospitals. Convergent has over 2,800 employees and operates fifteen office locations.
Silver Oak made its original investment in Convergent in June 2007. During Silver Oak’s ownership, the Company expanded into new lines of business such as Patient Access, developed near-shore capabilities with a facility in Guatemala, made significant investments in technology and improved operating efficiencies. In addition, management successfully navigated a challenging economic environment and increased regulatory scrutiny. Despite these pressures, Convergent grew the business nearly 35% during the period of Silver Oak’s investment.
“We believe the acquisition of Convergent by ACT is a great outcome for all parties,” said Dan Gill, Managing Partner at Silver Oak. “Our management team did a remarkable job growing the business in a difficult environment, positioning Convergent well to continue its strong momentum in its new partnership with ACT.”
Mike Meyer, CEO of Convergent Outsourced Receivables Management, noted, “We are very appreciative of the support and guidance from the Silver Oak team over the last seven years.
Convergent is a much stronger business with significant momentum due to the strength of our team but also Silver Oak’s investments in the business and strategic counsel.”
Derek Pickell, CEO of Convergent Revenue Cycle Management, said, “The healthcare side of Convergent has seen significant changes during Silver Oak’s investment. We have invested to develop multiple new offerings, the most substantial of which are our PatientQuest™ service line, providing Patient Access outsourcing solutions, as well as expanding and upgrading all of our Patient Contact Center Solutions to address the demands of our healthcare provider partners as the patient pay portion of healthcare claims continue to climb. I am excited to continue this growth with ACT and am grateful for Silver Oak’s support in helping us get the business to where it is today.”
Account Control Technology Holdings, Inc. represents a diverse group of companies offering outsourced business services. Its flagship company, Account Control Technology, Inc., is a leader in providing consultative debt management, collection, call center and business office solutions for education, government and consumer entities. Established in 1990, ACT has been recognized as an Inc. 5000 fastest-growing private company for the past seven years running. ACT Holdings companies also include Convergent and Diamond Student Information System. For more information, call 800-394-4228, email [email protected] or visit www.accountcontrol.com.
Kirkland & Ellis LLP acted as legal counsel to the sellers.