High Road Capital Partners’ Accentus, a Canadian medical transcription business, bought a pair of companies to boost its presence in outsourced medical transcription services and technology. The company, which High Road targeted for investment in 2009, will expand its footprint in the U.S. with Illinois-based Transolutions, Inc., and Florida-based ZyloMed. Bank of Montreal and BMO Capital Corp. provided financing for the transactions.
HIGH ROAD CAPITAL PARTNERS’ PORTFOLIO COMPANY ACCENTUS COMPLETES TWO ADD-ON ACQUISITIONS
NEW YORK, December 23, 2010 – High Road Capital Partners (www.highroadcap.com) announced today that an affiliate of its portfolio company Accentus has completed two add-on acquisitions: , a leading provider of outsourced medical transcription services to the U.S. ambulatory healthcare market, and a medical transcription provider which utilizes a proprietary software platform that integrates with voice recognition technology and is focused on the U.S. acute care market.
Accentus, which was acquired by High Road in March 2009, is the leading provider of integrated medical document management solutions – medical transcription, document conversion, and coding services – to healthcare providers in Canada.
“These two acquisitions give Accentus timely entry into the rapidly growing U.S. market for outsourced clinical documentation and electronic health records services. Physicians are frustrated and demoralized by the amount of time and money they must devote to practice management rather than patient care,” said Bob Fitzsimmons, High Road’s Managing Partner. “High Road’s strategy of creating a leading North American provider of comprehensive outsourced medical records management services, serving both the hospital and ambulatory markets, is significantly advanced by these transactions,” added High Road partner Jeff Goodrich.
“The combined Transolutions and ZyloMed management team, led by Mike Carnrite and Susan Sumner, will drive our U.S. efforts,” said Stephen Rogers, CEO of Accentus. “Transolutions and ZyloMed will continue to provide best-in-class physician service and high-quality transcription services. These complementary services, together with Accentus’ know-how and reliability in the growing areas of document imaging and coding, will provide a compelling value proposition for physicians and a strong platform for growth throughout North America. Our services will reduce medical costs and should ultimately improve patient care.”
The Zylomed acquisition closed on November 2, 2010, while the Transolutions transaction closed on December 22, 2010. Financing for the transactions was provided by Bank of Montreal and BMO Capital Corp. Transaction consideration was not disclosed. Jeff Goodrich was High Road’s lead partner on the transactions. Also working on the transactions from High Road were Partner William Hobbs, Vice President Ben Schnakenberg, and Associate Paul Langley. Kruse Acquisitions advised the sellers of Zylomed, and Brookwood Associates advised the sellers of Transolutions.
High Road has completed eleven transactions – seven platform investments and four add-on acquisitions – for its debut fund, High Road Capital Partners Fund I, LP, since June 2008.