Align Networks, which is backed by General Atlantic, is merging with Universal SmartComp, which is a portfolio company of The Riverside Co. Financial terms weren’t disclosed. The combined company will operate under the Align Networks brand name and be led by Align CEO and President Butch Hofstetter. Both General Atlantic and Riverside will remain investors of Align once the deal closes. Jefferies & Co. advised Align/GA. Edgeview Partners provided financial advice to Universal SmartComp/Riverside.
Align Networks, Inc. (“Align Networks” or “Align”), a leading provider of workers’ compensation physical medicine programs, and Universal SmartComp (“USC”), a nationwide provider of physical medicine services, today announced that they have entered into a definitive merger agreement to create the premier national coordinator and manager of physical medicine for workers’ compensation patients. Financial terms of the transaction, which is subject to customary approvals and is expected to close by year-end, were not disclosed.
The combination of these two highly complementary businesses will enable the new company to provide an expanded provider network and offer the combined customers a more complete physical therapy solution, while ensuring that the highest quality of care is provided to injured workers. USC’s complementary solutions, provider network, and strong clinical foundation will enable Align to have a more comprehensive workflow and better manage the entire referral and treatment cycle for its constituents. The combined company will operate under the Align Networks brand name and will be led by Butch Hofstetter, President and CEO of Align. “The merger with USC will enable us to offer the premier actively managed physical medicine network in the United States for the workers’ compensation industry,” said Hofstetter. “This strategic combination will provide Align with the most complete set of tools and geographic coverage to ensure that we are able to provide superior outcomes and solutions for providers, carriers, employers and patients alike. We look forward to having the USC team as our partners as we continue to build our company into the preeminent service provider to the workers’ compensation industry.”
“We are excited to combine with Align and believe this transaction is a win-win for our customers, providers and employees,” said Dr. Shannon Vissman, PT, CEO of USC. “Together with Align, USC will be able to provide the workers’ compensation industry with the comprehensive critical care management tools and cost-containment services needed to deliver higher quality patient outcomes at a lower cost.”
Founded in 2006, Align coordinates and actively manages physical medicine for workers’ compensation patients through its nationwide provider network. Since inception, Align has differentiated itself in the industry through a singular focus on serving all workers’ compensation constituents – insurance carriers and third-party administrators, injured workers, and therapy providers. Align consistently delivers outstanding value, defined by industry-leading cost savings, clinically-driven superior patient outcomes, and streamlined administrative processes.
Universal SmartComp was founded in 2000 and has built a physical medicine network that covers all 50 states, helping control the costs of physical medicine in workers’ compensation. The company uses proprietary treatment benchmarks, peer to peer communications, and pricing models to control expenses.
In July 2011, Align Networks announced an investment from global growth equity firm General Atlantic. In 2008, USC announced an investment from global private equity firm The Riverside Company. Both General Atlantic and The Riverside Company will remain investors in Align following closing of the transaction. Jefferies & Co. advised Align and General Atlantic on the transaction. Edgeview Partners advised USC and The Riverside Company.
About Align Networks
Align Networks manages a specialized workers’ compensation provider network of outpatient rehabilitation facilities throughout the United States. The company partners with its customers to expedite scheduling and treatment of injured workers, while providing significant cost savings relative to direct-to-provider contracting and ensuring appropriate usage through its proprietary utilization management system. Founded in 2006, Align is headquartered in Jacksonville Florida. For further information, please see: www.alignnetworks.com.
About Universal SmartComp
Established in 2000 in Washington, PA, USC is a leading national physical medicine services company in the workers’ compensation industry with network locations in all 50 states. USC offers a true clinical solution that helps its clients’ to manage provider utilization effectively, helps injured workers recover and get back to work sooner, and generates cost savings on workers’ compensation claims and treatment. For further information, please see: www.universalsmartcomp.com.
About General Atlantic
General Atlantic is a leading global growth equity firm providing capital and strategic support for growth companies. GA combines a collaborative global approach, sector specific expertise, long-term investment horizon and a deep understanding of growth drivers to partner with great management and build exceptional businesses worldwide. Established in 1980, GA manages approximately $17 billion in capital and has more than 75 investment professionals based in Greenwich, New York, Palo Alto, London, Düsseldorf, Hong Kong, Beijing, Singapore, Mumbai and São Paulo. For further information and a listing of GA’s public and private portfolio companies see www.generalatlantic.com.
About The Riverside Company
The Riverside Company is a global private equity firm focused on acquiring growing businesses valued at up to $200 million (€200 million in Europe). Since its founding in 1988, Riverside has invested in more than 280 transactions. The firm’s international portfolio includes more than 80 companies, and it has $3.2 billion/€2.5 billion in assets under management.