Mountaingate Capital has made an undisclosed investment in ImagineSoftware, a revenue cycle management SaaS platform. Adelphi Capital LLC and law firm Nexsen Pruet LLC advised ImagineSoftware on the transaction while Kirkland & Ellis LLP advised Mountaingate. Varagon Capital Partners and NewStar Financial provided additional financing for the recapitalization.
DENVER, May 2, 2018 – ImagineSoftware, the leading Revenue Cycle Management SaaS Platform helping clients achieve peak performance and measurable results by streamlining the billing and collections workflow, improving staff productivity and increasing practice profitability, today announced that it has received a strategic investment from Mountaingate Capital (“Mountaingate”).
Mountaingate is a leading buy and build middle market private equity firm based in Denver, CO. The investment in Imagine marks the fifth platform investment for Mountaingate in its debut fund, which closed in 2017.
Founded in 2000 by Sam Khashman, ImagineSoftware has experienced tremendous growth since inception and has earned a reputation as a leader in the Revenue Cycle Management sector. Today, ImagineSoftware bills for over 46,000 physicians in Radiology, Anesthesia, Emergency Medicine, Pathology, Oncology, and over 18 other specialties with end-to-end practice and revenue cycle management software solutions. ImagineSoftware is partnering with Mountaingate to accelerate its growth organically as well as through selective strategic acquisitions.
“We are very excited to partner with Sam and Imagine’s deep and passionate leadership team. Imagine is a forward-thinking leader in helping billing companies and medical practices streamline and improve billing efforts,” said Stew Fisher, Managing Director of Mountaingate. “The company’s relentless focus on its customers’ success truly sets it apart and has positioned the company for continued growth.”
“One of our early customers exclaimed ‘If you can imagine it, they can do it’ and it set the stage for our culture and focus ever since. The partnership with Mountaingate will help Imagine achieve our next stage of growth and permit us to further accelerate innovation through resources and capabilities,” said Sam Khashman, CEO and Founder. “After an extensive search for a business partner who aligns with Imagine’s client-focus, and our culture, Mountaingate’s track record and their experience in partnering with entrepreneurs provided the right partnership for us. We are thrilled to have their support and are very excited about the next chapter of our growth and the growth of our customers.”
ImagineSoftware was advised by Adelphi Capital, LLC and law firm Nexsen Pruet, LLC, while Mountaingate was advised by law firm Kirkland & Ellis LLP. Varagon Capital Partners and NewStar Financial provided additional financing for the transaction.
Mountaingate Capital is a private equity firm based in Denver that specializes in building and empowering middle market companies with strong growth potential and engaged leadership teams. The firm was launched by a team of partners with deep investment expertise in four distinct market sectors: marketing services, business/industrial services, specialty distribution and specialty manufacturing, including medical devices. Mountaingate’s focus on organic growth coupled with its proven customer-centric buy-and-build approach for add-on acquisitions and shared equity ownership with management creates more value for the end customer, while forging stronger, more collaborative, and more successful investment partnerships with management teams. In 2017, Mountaingate announced the close of its first fund with $395 million in capital commitments. Mountaingate targets investments in new platform companies typically with $5 million to $25 million of EBITDA. For more information on Mountaingate, please visit http://mountaingatecap.com.
ImagineSoftware is the leading provider of billing automation software and revenue cycle management applications. Offering powerful technology solutions for medical billing offices, practices, and hospitals, Imagine Software currently serves more than 46,000 physicians. ImagineSoftware solutions improve financial efficiency, build provider reputation, and ultimately improve patient experience. For more information, visit www.imagineteam.com and follow us on Twitter @ImagineTeam.