Compass Partners, a New York PE firm, said Monday that it has completed its buy of DANTOM Systems. Credit Suisse’s Customized Fund Investment Group also invested in the deal. Financial terms weren’t disclosed. Bolder Capital, a Chicago PE firm, was the seller. Wixom, Mich.-based DANTOM provides outsourced document management services and data solutions to the accounts receivable management industry. Madison Capital Funding, NXT Capital and Babson Capital provided debt financing. William Blair & Co. served as financial advisors to DANTOM.
Compass Investment Partners Fund, L.P. (“Compass Partners”) has completed the acquisition of DANTOM Systems, Inc. (“DANTOM” or the “Company”). DANTOM is a leading provider of outsourced document management services and customized data solutions to the accounts receivable management industry. The Company’s core service offering includes secure document creation and delivery, data hygiene and analytics, electronic archival services and online payment portals, all while ensuring compliance with regulatory guidelines. DANTOM serves a large and diverse customer base across the healthcare, financial, home services and government end-markets.
“The entire DANTOM team is excited to partner with Compass Partners for the next stage of the Company’s growth,” said Timothy Schriner, CEO of DANTOM. “The Compass Partners team has developed a unique understanding of our business model and will provide strategic resources and investment capital to accelerate our business into new value-added services.”
“DANTOM’s business model represents a core focus of Compass Partners’ targeted middle-market investment strategy in the Business Information and Outsourced Services market,” said Scott Marden, Managing Partner of Compass Partners. “As a value-added outsourced provider of a critical business function, the Company not only delivers operational efficiencies but also helps drive revenue for its customers.” DANTOM will be the first platform investment for Compass Partners within its business process outsourcing sector focus. Justin Lipton, Managing Director of Compass Partners, added “The Company has established a differentiated approach through its full suite of electronic data and analytical services, value-added regulatory and compliance functions and secure technology platform. We look forward to working with Tim Schriner and DANTOM’s management team to build on its industry-leading reputation.”
Credit Suisse’s Customized Fund Investment Group invested equity alongside Compass Partners in DANTOM. Madison Capital Funding, NXT Capital and Babson Capital provided debt financing for the transaction. The Company was previously owned by Bolder Capital, a Chicago-based private equity firm established in partnership with JZ Capital Partners Ltd. and The Edgewater Funds. William Blair & Company L.L.C. and SNR Denton LLP advised DANTOM on the transaction. Sidley Austin LLP served as legal counsel to Compass Partners.
DANTOM Systems, Inc. is the premier provider of value-added business process outsourcing solutions serving the accounts receivable management and revenue cycle management sectors. DANTOM’s national client base of over 900 organizations includes the nation’s
largest collections agencies, hospitals, medical practices, cable companies and utilities. Established in 1997, with headquarters in Wixom, MI, DANTOM has more than 100 years of combined experience in secure data transfer, integrated data analytics, document creation and delivery, electronic archival and online bill payment. DANTOM’s product and service offering provides customized accounts receivable management and revenue cycle management solutions to improve efficiency, reduce costs and increase cash flow. For more information please visit: www.dantomsystems.com
About Compass Partners:
Compass Partners is a New York based private equity firm focused on investing in growth-oriented, middle-market companies across the Business Information and Outsourced Services markets in North America. The fund seeks to invest in proven, profitable businesses that provide their customer bases with critical information, proprietary content and value-added outsourced services. Targeted sectors for investment include: B2B information management, marketing services, business process outsourcing and knowledge services. For more information please visit: www.compasspartners.com