Imperial Capital continues healthcare deal streak, backs MRO Corp

Canadian private equity firm Imperial Capital Group has continued its run of healthcare deals, investing in MRO Corp, a U.S. disclosure management and health information exchange.

The deal, the financial terms of which were not disclosed, is the fourth done so far by Imperial Capital Acquisition Fund V, which raised $295 million in an oversubscribed final close that took place in December 2013 and was announced in March.

Imperial has of late found particular success in the healthcare industry. In fact, MRO is the firm’s sixth investment in this space in the last six years, and its fourth since early 2013. The transaction also comes on the heels of July’s $121 million joint investment by Imperial and OPTrust Private Market Group in Dental Corp, a network of Canadian dental care clinics.

Based in King of Prussia, Pennsylvania, MRO has for the past 12 years provided technology-driven services for the secure, compliant and efficient exchange of health information. Its clients, made up primarily of healthcare organizations, utilize its services and products to share data and manage compliance in an increasingly complex regulatory environment.

At a time when North American healthcare systems are undergoing a ‘perfect storm’ of legal and cultural changes, and vast sums are being spent on digitalization of medical records and e-health processes, Imperial believes the company’s offering suggests strong potential for growth.

“MRO is a gatekeeper for protected health information,” said Imperial partner Justin MacCormack in an interview with peHUB Canada. “It is a technology-enabled service company that can handle and share health information with accuracy and security.”

Imperial vice president Gene Chkolnik agreed, describing MRO’s health information disclosure and exchange solution as “smart and highly efficient.” Furthermore, the company has over time shown itself to be “a trusted steward of patient health information for hundreds of customers and an industry leader in terms of technology.”

MacCormack and Chkolnik said Imperial’s partnership with MRO will focus on accelerating growth in part by sourcing upselling opportunities and diversifying its customer base.

Along with MRO and Dental Corp, Imperial’s other recent investments include STI Technologies, a Halifax, Nova Scotia-based provider of healthcare reimbursement services. Last October, it invested $17 million to assist STI management in executing the company’s strategic vision. Additionally, in May 2013 Imperial invested in a network of Canadian veterinary clinics.

MacCormack was hired by Imperial in 2007 to lead its healthcare investment practice. He previously worked as a director at Onex Corp, where he made a significant contribution to several major healthcare acquisitions, including Emergency Medical Services and Skilled Healthcare.

Chkolnik joined the firm nearly four years ago. He was promoted to vice president at the time of the Dental Corp transaction.

Founded in 1989 by managing partners Jeff Rosenthal and Stephen Lister and headquartered in Toronto, Imperial focuses on lower mid-market opportunities in branded consumer products, business services and healthcare,

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