EDCO, medical-record-indexing firm, heads to auction block

  • Berkery Noyes tapped as sell-side banker
  • Company posts ~$20 mln in revenue
  • EDCO growing 50% YOY

EDCO Health Information Solutions, which digitally scans and sorts medical documents, is preparing to kick off a sales process, Buyouts has learned.

In response to inbound interest, EDCO engaged Berkery Noyes for financial advice, sources familiar with the matter said.

A process is expected to launch in the next few weeks. Both strategics and sponsors will be in the mix, though the auction will be largely geared toward the former, one source said.

EDCO, whose cloud-based software does business under the Solarity brand, offers point-of-care indexing for medical records in hospitals in North America.

Solarity isn’t a content-management system; rather, it’s software-as-a-service integrated with electronic-health-record systems like Cerner and Epic.

The Springfield, Missouri, company generates around $20 million of revenue, is profitable, and is growing at a rate of about 50 percent year-over-year, one source said.

Solarity competes with Hyland Software’s cloud-based SaaS product, OnBase; Kofax, a subsidiary of Thoma Bravo-backed Lexmark; and ChartMaxx, the document management product owned by Quest Diagnostics.

Other competing products are offered by Nuance and McKesson, as well as New Mountain Capital-backed Ciox Health and Warburg Pincus-backed DocuTap.

Founded in 1961, EDCO is headed up by Chairman and CEO Bill Glassman.

Berkery Noyes, for its part, kicked off an auction for another healthcare IT company, Collect RX, in January, Buyouts reported. The specialized revenue-cycle-management company helps healthcare providers bolster reimbursements of out-of-network bills.

Action Item: Learn more about Solarity: https://solaritybyedco.com/

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