Canadian mid-market private equity firm Imperial Capital Group has completed its previously announced $17 million investment in STI Technologies Ltd, a Halifax, Nova Scotia-based provider of reimbursement solutions for the healthcare market. The transaction provided exits to the company’s early investors, including GrowthWorks Atlantic Venture Fund. Imperial’s investment in STI marks the second deal done by the firm’s fifth fund, Imperial Capital Acquisition Fund V, which recently raised over $250 million according to an exclusive report by peHUB Canada.
Imperial Capital Invests in STI Technologies Limited
TORONTO, ONTARIO–(Marketwired – Oct. 16, 2013) – Imperial Capital Group of Toronto is pleased to announce that it has completed a $17 million dollar investment in STI Technologies Limited (“STI”). This marks the second investment for Imperial Capital Acquisition Fund V.
Halifax based STI is the largest intelligent reimbursement card provider to the Canadian healthcare industry, implementing innovative programs on behalf of major pharmaceutical companies. Founded in 2001, STI’s vision was to provide an effective way for the industry to implement drug-sampling programs. Early success lead the Company to leverage its technology platform to create and deliver a variety of card-enabled intelligent reimbursement solutions to the healthcare marketplace. Today, the Company’s solutions include drug sampling, medical device reimbursement, patient assistance, and patient choice programs (including innoviCares, see below). STI continues to expand into other areas such as data, analytics, and medication adherence.
“Imperial is on-trend with this new investment,” said Dr. Lu Barbuto, CEO of Imperial Capital’s former portfolio company, AIM Health Group Inc. “STI is a unique technology company in the Canadian marketplace and, given their success to date, it is clear that they are providing value-added services to the pharmaceutical industry as well as other stakeholders.”
One of the factors currently accelerating the 50 person Company’s growth is innoviCares, a card-based drug benefit program which offers cardholders the choice of staying on off-patent, branded medication at little or no additional cost. The innoviCares card can be used at any Canadian pharmacy and is easily obtained online at www.innovicares.ca, or through physicians, local pharmacies, or employers. There are currently 49 branded, off-patent, medications included in the program such as Crestor, Celexa, Nexium, and Plavix (the full list is available at www.innovicares.ca), and the list is quickly growing.
STI is a “profitable and highly scalable technology company playing an important role in the Canadian healthcare industry,” commented Justin MacCormack, Partner and head of the healthcare practice at Imperial Capital. “We are excited about our partnership with STI and look forward to assisting management in the execution of the company’s strategic vision.”
STI is Imperial Capital’s fourth healthcare investment within North America in the past 5 years.
“We’re thrilled to have found a partner in Imperial Capital. They have a solid track record and are aligned with us on our vision,” noted Steve Nicolle, CEO, STI Technologies Limited. “Over the next few years we plan on further expanding our services and reach into new areas of healthcare.”
The Company’s advisor for this transaction was Bloom Burton & Co, a healthcare-specialized investment banking group based in Toronto.
Founded in 1989, Imperial Capital is a Toronto‐based private equity firm with a strong track record of acquiring and building entrepreneurial and family-owned businesses in the Canadian and American middle markets. Imperial Capital works with high-calibre management teams and industry-experienced CEO Partners to accelerate growth and enhance the operating performance of its portfolio companies. Imperial Capital’s current investments include Schulman Associates Institutional Review Board, Inc. (pharmaceutical services), Petra Pet, Inc. (owner of Beefeaters®, Petra Vet®, and Nutri‐Vet®; pet treats, consumables, and nutraceuticals), Lise Watier Cosmétiques Inc. (cosmetics, skincare, and fragrances), and Workplace Health and Cost Solutions Ltd. (employee health and other services). Imperial Capital has total assets under management of over $500 million and is currently fundraising and investing from its fifth fund which has closed commitments of over $250 million.
For further information on Imperial Capital, please go to www.imperialcap.com.
For further information on STI Technologies, please go to www.smartsti.com.
Imperial Capital Group Ltd.
(416) 362-3658 x234
STI Technologies Limited
Mary Jane Leslie
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