Denver-based private equity firm KRG Capital Partners has completed its sale of Avizent to York Risk Services Organization Inc. The deal closed on December 15, and is KRG’s third exit from its third fund. York Risk Services Organization is a portfolio company of ABRY Partners. Terms of the all-cash deal were not released.
KRG Capital Partners (KRG), a Denver-based private equity firm, completed its sale of Avizent to York Risk Services Organization, Inc., a portfolio company of ABRY Partners. The transaction closed on December 15, 2011. The all cash sale represents KRG’s third successful exit in its $715 million Fund III. Avizent, headquartered in Dublin, Ohio is a fully integrated national risk management provider serving the workers’ compensation, auto and general liability segments.
Avizent’s innovative service offering includes third-party claims administration (TPA), medical managed care services, network PPO access (including diagnostic scheduling services) and alternative risk solutions. Unlike most of its competitors that outsource most or all of these services, Avizent performs nearly all of its services in-house, creating a truly “integrated” product offering. Avizent’s customers include sophisticated self-insured employers, government entities, self-insured groups and associations and national and regional commercial insurance carriers.
“Avizent’s management team has done an excellent job executing our combined vision and achieving a successful outcome,” said Jay Coughlon, a Managing Director at KRG. “Since our involvement began in 2007, we have enjoyed a productive and collaborative relationship building a truly unique service provider.” Bennett Thompson, a Vice President at KRG added. “Avizent’s unique model is generating substantial momentum in the market and we wish them well with their new partners.”
“Joining forces with KRG enhanced our team’s ability to build a leading national risk management provider,” said Tom Watson, CEO of Avizent. “KRG’s support accelerated the build out of our fully-integrated model, which has allowed us to both reduce costs and enhance outcomes for our clients.”
William Blair & Company acted as exclusive financial advisor to Avizent in connection with the transaction and Morrison & Foerster served as legal counsel for Avizent.
Founded in 1996, KRG is a Denver based private equity buyout firm with $4.3 billion of cumulative capital either deployed or available for future investment, which includes approximately $1 billion deployed since inception on behalf of equity co-investors. The firm seeks investment opportunities for its partners where KRG can work in concert with owners and operating managers who are committed to expanding their companies and becoming industry leaders. The result is a partnership that focuses on creating a significantly larger enterprise through a combination of internal growth and complementary add-on acquisitions. Since inception, KRG has invested in 41 platform companies and has completed 128 add-on acquisitions for those platforms.