High Road Capital Partners scored its second exit for its debut fund, High Road Capital Partners Fund I, LP, dealing Ottawa-based Accentus to Nuance Communications Inc. The deal generated a 3.1x gross cash-on-cash return and a 49.0% gross IRR, the firm said. Specific terms of the sale were not released. The firm’s first exit was Milwaukee Gear in February 2012.
High Road Capital Partners (www.highroadcap.com) has sold Accentus, marking the second exit for the firm’s debut fund, High Road Capital Partners Fund I, LP. The sale generated a 3.1x gross cash-on-cash return and a 49.0% gross IRR for High Road. The firm’s first exit was Milwaukee Gear in February 2012.
Ottawa, Ontario-based Accentus is a leading provider of medical transcription, document imaging, and remote coding technology and services to hospitals and physician groups in Canada and the United States. Accentus was acquired by Nuance Communications, Inc.
“In the three and a half years High Road owned Accentus, revenues and EBITDA increased by 400%,” said Bob Fitzsimmons, High Road’s Managing Partner. “Our investment strategy is to buy niche leaders and work with management to build bigger, more efficient, and qualitatively better businesses. In partnership with Accentus’s outstanding management team, we were able to execute our value creation plan by expanding service offerings, completing four add-on acquisitions to build a presence in the US acute and ambulatory markets, and broadening technological capabilities.”
Steve Rogers, CEO of Accentus, said, “With High Road’s support, we achieved significant growth in our medical transcription business in Canada while expanding into the United States. Additionally, we made significant investments in our proprietary workflow management platform and in developing medical document imaging and remote coding services. These investments enabled us to broaden and deepen our client relationships.”
Partners Jeff Goodrich and Bill Hobbs and Principal Ben Schnakenberg led High Road’s investment in Accentus. Harris Williams & Co. advised the shareholders on the transaction. Jones Day and Cassels Brock & Blackwell LLP provided legal counsel.
High Road Capital Partners has completed 20 transactions, including 18 acquisitions – eight platform investments and ten add-on acquisitions – for its debut fund, High Road Capital Partners Fund I, LP.
For further information, please contact Bob Fitzsimmons of High Road Capital Partners at (212) 554-3265.
High Road Capital Partners
High Road Capital Partners is a private equity firm focused on smaller middle market transactions. High Road was formed in 2007 and currently manages over $150 million of committed capital. High Road focuses on niche-leading companies with revenues of $10 million to $100 million and EBITDA of $3 million to $10 million. Once acquired, High Road works in partnership with management to take the companies to the next level through a combination of organic growth initiatives and add-on acquisitions.