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New Mountain Capital to acquire HealthPort

New Mountain Capital has agreed to buy HealthPort. No financial terms were disclosed for the transaction, which is expected to be completed in the fourth quarter of this year. Credit Suisse and TripleTree were financial advisors to New Mountain on the deal. Based in Alpharetta, Georgia, HealthPort is a provider of medical information access management and compliance services on behalf of healthcare firms.

PRESS RELEASE

NEW YORK & ALPHARETTA, Ga.–(BUSINESS WIRE)–HealthPort, the nation’s leading provider of secure access to confidential medical information for healthcare organizations and insurance payors, today announced that it has entered into a definitive agreement to be acquired by a fund managed by New Mountain Capital, L.L.C., a leading growth-oriented New York based private equity firm, in an all-cash transaction. Price and terms of the transaction were not disclosed.

HealthPort, headquartered in Alpharetta, GA, processes over 20 million medical record requests each year on behalf of over 15,000 healthcare facilities, including over one-third of all hospitals nationwide. The company also offers audit management tools to health care providers, and is a rapidly emerging leader as a provider of information for insurance company payors and commercial health plans, all built on HealthPort’s industry-leading technology and its reputation for quality, regulatory compliance and security.

“New Mountain is the ideal partner for HealthPort given NMC’s long track record of ‘building great businesses’, and we will now have more resources than ever to achieve our growth and strategic objectives,” said Mike Labedz, HealthPort’s CEO. “We look forward to working with New Mountain. This is a very positive day for HealthPort, for our associates, and for our customers.”

“HealthPort is the highly regarded leader in a very important and growing sector of medical information management, and we look forward to working with the HealthPort team to build the company for its next phase of growth,” said Matt Holt, Managing Director of New Mountain. “Over its long history, HealthPort has been committed to the success of its customers. We intend to work closely with HealthPort’s management to accelerate growth investments and strategic development, and to make the company an even more valued partner to its customer base.”

The transaction is expected to close in the fourth quarter of 2014, subject to customary regulatory approvals and closing conditions. Credit Suisse and TripleTree acted as financial advisors to New Mountain.

About HealthPort
HealthPort is the leading provider of medical information access management and compliance services on behalf of healthcare organizations, enabling the compliant exchange of protected health information (PHI) through flexible release of information offerings and audit management technologies. HealthPort partners with healthcare organizations to mitigate risk, improve financial performance, and increase requestor satisfaction by providing access to HealthPort Connex™, the largest, most secure distribution network and technology portal available for PHI, as well as a HIPAA-trained staff backed by legal expertise.

About New Mountain Capital
New Mountain Capital is a New York-based private equity firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, public equity and credit funds with over $15 billion in aggregate capital commitments. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit www.newmountaincapital.com.