Carlyle Group agreed to acquire healthcare technology services provider CNSI from Alvarez & Marsal Capital Partners. Todd Stottlemyer, chief executive of CNSI who previously partnered with Carlyle as a senior executive at BDM International, will continue to lead the company.
Global investment firm Carlyle (NASDAQ: CG) announced today that affiliated funds managed by Carlyle have agreed to acquire CNSI from Alvarez & Marsal Capital Partners.
CNSI provides innovative healthcare technology solutions for some of the most forward-thinking State and Federal clients. As a trusted partner to government agencies, CNSI develops, implements, operates, and maintains mission-critical systems for Medicaid, Medicare, and related health programs through its claims and encounter processing, provider enrollment, analytics, program integrity, interoperability, and other solutions.
Todd Stottlemyer, who became CEO of CNSI in 2018, will continue to lead the company. Stottlemyer has previously partnered with Carlyle as a senior executive at BDM International. “We are delighted about this opportunity to partner with Carlyle as we continue to execute exquisitely for our clients, strengthen our market leading products and solutions, and drive innovation that improves health outcomes and lowers costs,” said Stottlemyer. “Carlyle is a first-class organization, and I know from my previous experience working with them that they truly partner with their portfolio companies to help them achieve their vision and strategic growth objectives.”
“We are very excited to partner with Todd Stottlemyer and the CNSI management team. We believe CNSI is well-positioned for continued success driven by its technical leadership and proven track record of innovation and execution,” said Dayne Baird, Managing Director at Carlyle. “CNSI operates at the unique intersection of technology, healthcare and government services, and we see significant growth opportunities ahead as the company leverages its unique capabilities and continues to develop market-leading solutions.”
“It has been a fantastic partnership with the CNSI management team. Throughout our four-year investment, the team successfully leveraged CNSI’s market leading technology solutions to build a highly scalable platform for growth in the healthcare technology marketplace. We look forward to the team’s continued success as they begin their next phase of growth in partnership with Carlyle,” said Alex Nivelle, Partner at Alvarez & Marsal Capital Partners.
Baird acted as the exclusive financial advisor to CNSI in connection with the transaction. Kirkland & Ellis LLP acted as legal advisor to CNSI. Latham & Watkins LLP acted as legal advisor to Carlyle. The transaction is expected to close in December 2021, subject to the satisfaction of customary closing conditions.
CNSI delivers a broad range of health information technology enterprise solutions and customizable products to a diverse base of State and Federal agencies in the United States. CNSI aligns, builds and manages innovative, high-quality, cost-effective solutions that help clients achieve their mission, enhance business performance, reduce costs and improve the health of individuals and communities. Headquartered in the United States with a major technology center in Chennai, India, CNSI employs a world-class team of technologists, program managers and subject matter experts, with large scale mission-critical information technology implementation experience.
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $293 billion of assets under management as of September 30, 2021, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 1,800 people in 26 offices across five continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.
About Alvarez & Marsal Capital Partners
A&M Capital Partners is Alvarez & Marsal Capital’s flagship investment strategy focused on middle-market control transactions in North America with total assets under management of $1.8 billion. A&M Capital Partners has a strong and referenceable track record of serving as a trusted partner to founders, corporates and management teams, providing the capital and strategic assistance required to take businesses to the next level of success. A&M Capital Partners invests in businesses across a wide range of sectors including Business Services, Industrials, Manufacturing, Food & Beverage, Healthcare, Consumer & Retail, Government Services, Financial Services and Energy Services.