CI Capital Partners, the New York private equity firm, will acquire Interactive Health Solutions Inc., the provider of health and wellness solutions for terms undisclosed. MidCap Financial, Solar Capital and PennantPark Investment Corporation provided financing for the transaction.TripleTree LLC acted as financial advisor to IHS. Pepper Hamilton LLP provided legal counsel to IHS and Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal counsel to CI Capital.
CI Capital Partners Acquires Interactive Health Solutions, Inc.
Leading Provider of Health and Wellness Solutions to be Growth Platform
New York, NY and Arlington Heights, IL, October 6, 2011 – CI Capital Partners, a North American private investment firm, announced today that it has acquired Interactive Health Solutions, Inc. (“IHS”), a leading provider of health and wellness solutions. The terms of the transaction were not disclosed.
IHS develops and offers wellness programs to employer groups focused on helping individual participants take accountability for their health, which over time, lowers healthcare costs for its customers. The IHS offering, which includes onsite biometric screening, telephonic health coaching and health compliance program management, has multiple benefits, including enhancing business performance, reducing the cost of medical benefits and increasing workforce productivity. IHS works with more than 1,000 fully-insured and self-insured companies, with over one million total employees. The company was founded in 1991 by Jim Banks, who will remain a member of IHS’s Board and be active in supporting the company’s growth. Joe O’Brien will continue as the company’s Chief Executive Officer.
“As companies continue to focus on healthcare costs, population health management programs such as those offered by IHS are becoming more critical for both employers and employees,” said Steven M. Lefkowitz, President of CI Capital. “We are delighted to partner with Joe O’Brien and his experienced management team and look forward to working with them to continue to pursue growth opportunities,” said Mr. Lefkowitz.
Joe O’Brien said, “CI Capital has a long track record helping companies like IHS accelerate their growth. We are excited to form this partnership to create and deliver even more value to our customers. We are confident that this transaction will enable IHS to pursue the next phase of our growth strategy. ”
“The company is well positioned to take advantage of the excellent long-term growth prospects in the emerging wellness sector,” added Tim Hall, Managing Director at CI Capital. “IHS will serve as a platform in the industry as we seek to invest in or acquire complementary businesses to expand the company’s product breadth and customer base.”
Frederick J. Iseman, Chairman of CI Capital, added, “We are extremely pleased to have IHS become the fourth platform portfolio company in our new fund. This transaction signals our return to a sector where we have enjoyed good fortune in the past, healthcare services. We are always open to new businesses, and invest in them regularly, but we also believe in building on prior successes. We have plenty of capital to do both, and are actively seeking new opportunities.”
MidCap Financial, Solar Capital and PennantPark Investment Corporation provided financing for the transaction.
TripleTree LLC acted as financial advisor to IHS. Pepper Hamilton LLP provided legal counsel to IHS and Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal counsel to CI Capital.
About CI Capital Partners
CI Capital Partners is a North American private investment firm focused on building and expanding leading middle market businesses. The firm targets industries that are [ripe] for consolidation and seeks to substantially scale businesses through organic growth and acquisitions. Since its founding in 1993, the firm and its portfolio companies have made over 95 acquisitions representing over $5 billion in enterprise value. CI Capital’s existing portfolio consists of companies which collectively generate annual revenue of approximately $4.0 billion, EBITDA of $350 million, and have more than 14,000 employees. To learn more about CI Capital Partners, please visit www.cicapllc.com.
About Interactive Health Solutions, Inc.
IHS provides clinically based and HIPAA compliant population health management programs to companies nationwide. The year-round IHS program includes annual, on-site health evaluations; individualized health goals; in-person courses and online information about specific conditions; as well as full program administration, record keeping and reporting. For more information, contact IHS at 800-840-6100, or visit www.healthiestcompanies.com.