Francisco Partners has invested an undisclosed amount in T-System Inc., a Dallas-based provider of clinical documentation solutions for hospital emergency departments.
T-System, Inc., the industry leader in clinical documentation solutions for hospital emergency departments (EDs), today announced that Francisco Partners, one of the world’s largest technology-focused private equity firms, has agreed to make a significant capital investment in the company. The transaction is expected to close shortly, after satisfying customary closing conditions.
Woodrow “Woody” Gandy, M.D., and Robert Langdon, M.D., founded T-System in 1996 and used their combined 35 years of experience practicing emergency medicine to give ED clinicians a better way to document patient visits. These solutions provide clinical meaning and increase efficiency, ultimately improving workflow, quality of care and the bottom line. Today, T-System offers both software- and paper-based clinical documentation solutions and serves more than 40 percent of U.S. hospital emergency departments. This strong market position, combined with the superior quality of T-System’s solutions, provided the foundation for Francisco Partners’ investment.
“This partnership will help T-System achieve greater value for our customers and their patients,” said Dr. Langdon. “With Francisco Partners’ resources, we will provide improved customer service, more robust clinical value and increased interoperability with enterprise vendors.”
Upon closing of the transaction, John Trzeciak will assume the role of president and CEO at T-System. Trzeciak has more than 25 years of experience as a healthcare IT executive, has served as Operating Advisor with Francisco Partners for more than five years and currently serves on the boards of directors of several Francisco Partners healthcare IT portfolio companies. Trzeciak was co-founder of Health Systems International, a clinical information systems company acquired by 3M in 1993. Alongside Trzeciak, the current senior management team will continue to lead T-System after the transaction is completed. Drs. Gandy and Langdon will retain significant interests in the company and continue to serve on the company’s board of directors. “Additionally, we want to recognize outgoing CEO Mike Hansen for his leadership and outstanding contributions to T-System,” said Dr. Gandy. “Mike has been instrumental to our success over the past five years.”
“Francisco Partners brings a wealth of relevant healthcare experience and resources to the table,” said Dr. Gandy. “By joining forces with Francisco Partners, we will be able to accelerate key investments in people, processes and technology that will result in better solutions for our customers.”
T-System represents the sixth Francisco Partners investment in the healthcare IT industry, and joins its current portfolio companies, which include AdvancedMD Software, API Healthcare, Healthland and QuadraMed, as well as a former FP company, LYNX Medical Systems, which was acquired by Picis, Inc., in 2007.
“The demands on emergency departments are more complex than ever, requiring clinical documentation and productivity improvements. T-System has earned its reputation as the leader in ED solutions that drive clinical and financial performance for the emergency department and the hospital,” said Ezra Perlman, a partner with Francisco Partners and the head of its healthcare IT practice. “We are excited to be working with the T-System management team to provide enhanced solutions that maximize efficiency and improve the quality of care.”
T-System, Inc. sets the industry standard for emergency department clinical documentation tools, with approximately 40% of the nation’s emergency departments using T-System’s products. Established in Dallas, Texas in 1996, T-System was founded by two emergency department physicians who understand the challenges of working in such a fast-paced, and often chaotic, environment. To meet the individual needs of hospitals, T-System offers both a paper template and emergency department information system (EDIS). These tools help clinicians quickly see information so they can provide better patient care, while improving efficiency and the bottom line. Today, more than 1,800 civilian and military emergency departments in the United States, Puerto Rico and Australia rely on T-System’s documentation tools.
About Francisco Partners
With approximately $5 billion of committed capital and offices in San Francisco and London, Francisco Partners is one of the world’s largest technology-focused private equity funds. The firm was founded to pursue structured investments in technology companies undergoing strategic, technological, and operational inflection points. Francisco Partners targets majority and minority investments in private companies, public companies, and divisions of public companies, with transaction values ranging from $30 million to $2 billion. The principals of Francisco Partners have a proven track record, having invested in excess of $3 billion of equity capital in over 50 technology companies. For additional information, visit www.franciscopartners.com.