Great Point Partners has sold Equian to New Mountain Capital LLC for $225 million in cash. Based in Indianapolis, Equian is a health care information services company. UPDATE: In a separate release, Equian said it is merging with Louisville, Kentucky-based Trover Solutions Inc., which provides cost containment services and software to the private healthcare payer and property & casualty industries. Financial terms weren’t announced. Eir Partners advised New Mountain.
GREENWICH, CT and INDIANAPOLIS, IN – Equian, a Great Point Partners I (GPP I) portfolio company, today announced that it has been acquired by New Mountain Capital, LLC for $225 million in cash. Equian is a leading provider of health care payment integrity solutions to payors of medical claims.
Noah F. Rhodes, III, Principal of Great Point Partners and Board member of Equian stated, “We are very proud of the business that we have built with Scott Mingee, CEO, and the entire Equian team over the past eight years. During our partnership, we sourced and executed eleven add-on acquisitions, arranged multiple debt financings for acquisitions as well as a dividend recapitalization, grew revenue by a compound annual growth rate of over 31%, and increased EBITDA more than ten-fold. We know that Equian will continue to thrive, and look forward to seeing the business’ continued success.”
“The partnership that started in 2007 between the two co-founders Russ Sherlock and John Ansay and Great Point Partners has exceeded the goals we set for ourselves in terms of corporate growth and enhanced market position,” said Jeffrey R. Jay, M.D., Managing Director of Great Point Partners. “The Equian sale is also a milestone for GPP I, which had $156 million of committed capital. With the Equian distribution, gross distributions from GPP I during 2015 alone now exceed $165 million.”
“In 2007, the founders of Equian partnered with Great Point Partners to help us create a leading provider of payment integrity solutions,” said Russell W. Sherlock, Equian’s Co-Founder and Chairman. “We have had an incredible journey growing Equian into the market leading business it is today, and I am thankful to Great Point Partners for their partnership and confidence in our vision. Together, we built a great company that will continue to thrive for many years to come.”
“We are excited about this transaction and the opportunity that it represents for Equian.” said Scott Mingee, Chief Executive Officer of Equian, Inc. “We will continue to serve our clients with the same level of attention and customer service that we have in the past, and we will now be able to offer them an expanded product offering through our combination with Trover Solutions.”
About Great Point Partners
Great Point Partners (“GPP”), founded in 2003 and based in Greenwich, CT, is a leading health care investment firm with approximately $900 million of equity capital under management and 26 professionals, investing in the United States, Canada, and Western Europe. GPP is currently making new private equity investments from GPP II, which has closed on $215 million. Great Point manages capital in private (GPP I, $156 million, and GPP II) and public (BMVF, approximately $400 million) equity funds. Great Point Partners has provided growth equity, growth recapitalization, and management buyout financing to more than 100 health care companies. The private equity funds invest across all sectors of the health care industry with particular emphasis on biopharmaceutical infrastructure, devices and diagnostics, health care services, outsourcing, and information technology. The firm pursues a proactive and proprietary approach to sourcing investments and tuck-in acquisitions for its portfolio companies. Reach Great Point at 203-971-3300 or www.gppfunds.com.
Equian is a health care information services company providing solutions throughout the United States that ensure each health care interaction is paid accurately, and at the lowest possible cost.
Equian was backed by Great Point Partners, LLC, a leading health care investment firm, and is recognized nationally by Inc. Magazine and Modern Healthcare as a leading high-growth company in health care. Visit www.equian.com for more information.