Middle market investment bank Harris Williams & Co. is announcing that it advised the clinical documentation intelligence startup Webmedx on its sale to Nuance Communications. The deal brings scale to the company’s Nuance Healthcare division, according to Burlington, Mass.-based Nuance. Customers of Atlanta-based Webmedx include more than 100 hospitals, including Bon Secours Health System and Catholic Healthcare West.
Terms of the deal were not disclosed.
Harris Williams & Co., premier middle market investment bank, announces that Webmedx, Inc., a leading clinical documentation intelligence company, has been acquired by strategic buyer Nuance Communications, Inc. Harris Williams & Co. acted as the exclusive advisor to Webmedx. The transaction was executed by Cheairs Porter, Geoff Smith, and Dusty Lieb from the firm’s Healthcare & Life Sciences (HCLS) Group, with assistance from Sam Hendler from the firm’s Technology, Telecom & Digital Media (TTDM) Group.
The HCIT sector is experiencing increased M&A activity across both healthcare and technology segments. The sale of Webmedx to Nuance represents the third Harris Williams & Co. led HCIT transaction in the last six-months involving a strategic buyer. Other transactions include the acquisition of Gateway EDI by The TriZetto Group and the sale of InSite One, Inc. to Dell Inc.
“As hospitals seek to reduce costs and improve quality of care, the streamlined delivery of integrated clinical documentation and data has become a top priority. Harris Williams & Co. has seen robust appetite in the M&A market for companies that provide high quality data-centric solutions and services,” stated Cheairs Porter, a managing director in Harris Williams & Co.’s HCLS Group.
Webmedx, a portfolio company of Ferrer Freeman & Co. (FFC), is a value-added partner to major hospital customers across the U.S. The company offers “Best in KLAS” IT-enabled documentation services, a proprietary data mining solution called QualityAnalyticsTM and education and training capabilities through its subsidiary, Medical Technology Education Center (MTEC). This unique business model has positioned the company on the forefront of an industry shift towards interoperability and measurability in Electronic Health Records (EHR), a cornerstone of the majority of healthcare reform initiatives in a $16.5 billion market.
FFC is a private equity firm located in Greenwich, CT that invests exclusively in healthcare and healthcare-related companies. The firm has over $900 million under management and has decades of experience investing in, advising, acquiring and selling healthcare companies. FFC seeks to add value to its portfolio companies by bringing to bear its experience and networks.
Nuance is a leading provider of speech and imaging solutions for businesses and consumers around the world. Its technologies, applications and services make the user experience more compelling by transforming the way people interact with information and how they create, share and use documents.
Harris Williams & Co. (www.harriswilliams.com), a member of The PNC Financial Services Group, Inc. (NYSE:PNC), is the premier middle market advisor with a two-decade legacy of sell side excellence serving clients worldwide. The firm is focused exclusively on the middle market providing sell side and acquisition advisory, restructuring advisory, board advisory, private placements and capital markets advisory services. The firm’s HCLS Group focuses on transactions across the spectrum of healthcare market segments. For more information, contact Turner Bredrup, James Clark or Cheairs Porter in Richmond at +1 (804) 648-0072 or Todd Morris in San Francisco at +1 (415) 288-4260. The firm’s TTDM Group focuses on software, IT services, communications and digital media. For more information on Harris Williams & Co.’s efforts in TTDM, contact Jeff Bistrong at +1 (617) 654-2102 or Thierry Monjauze at +44 207 518 8900.
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, an Appointed Representative of Sturgeon Ventures LLP, which is authorized and regulated by the Financial Services Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business in the U.S. and Europe, respectively.
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