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Pamplona buys majority stake in Intralign

Pamplona has acquired a majority stake in Intralign, which is backed by Heritage Group and Cardinal Health. Jefferies and Lowenstein Sandler advised Pamplona on the transaction. Based in Scottsdale, Arizona, Intralign is a specialty healthcare services firm.

PRESS RELEASE

LONDON and NEW YORK, November 20, 2014 /PRNewswire/ –Pamplona Capital Management (“Pamplona”) is pleased to announce that its private equity fund has acquired a majority stake in Intralign Holdings LLC (“Intralign”). Headquartered in Scottsdale, Arizona, Intralign was formed in 2012 with a disruptive thesis to address a critical issue facing many hospitals today – spiraling costs and inconsistent clinical outcomes in the operating room (“OR”). Intralign combines clinical expertise, consulting services and IT/analytics tools to increase efficiencies, lower costs and improve clinical outcomes in major joint replacement and other surgeries. Intralign’s unique, technology-enabled service model provides a fully-integrated offering that enables hospital clients to better manage the costs of surgical episodes of care and move towards a “RepLess” operating room environment. Pamplona is joining existing investors Heritage Group and Cardinal Health.

Commenting on the transaction, Rick Ferreira, CEO of Intralign, said: “We are excited to be partnering with Pamplona. Given their deep industry knowledge and strong track record investing in the healthcare sector, the Pamplona team will be valuable partners as we continue to build Intralign into a world-class business serving health systems, physicians and patients.”

Jeremy Gelber, Partner at Pamplona, commented: “We are delighted to be partnering with the exceptional management team at Intralign. Given their history with Ascent Healthcare Solutions, Rick and the Intralign management team have a strong track record building businesses and developing cost containment solutions for hospitals and health systems. With the changes currently taking place in the U.S. healthcare industry, including an increasing focus on cost efficiency and clinical outcomes, Intralign’s unique business model and value proposition to hospitals positions the company well for continued success. We look forward to supporting Intralign during its next phase of growth.”

The investment in Intralign follows Pamplona’s recent appointment of Michael O’Boyle as a healthcare Operating Partner. Mr. O’Boyle, a senior healthcare executive and former CEO of Parallon Business Solutions, a subsidiary of HCA Holdings, will join the Board of Intralign. In addition to Intralign, Pamplona’s healthcare investment portfolio currently includes Alvogen, a fast growing multinational pharmaceuticals company focused on complex generic products; Magnacare, a leading healthcare administrative services company focused on self-insured employers and workers comp plans in the New York and New Jersey regions; and Privia Health, a physician practice management and population health technology company serving independent physicians and large physician groups in partnership with managed care organizations.

The acquisition will be made from Pamplona’s fourth private equity fund, Pamplona Capital Partners IV LP, a USD 4 billion investment vehicle, raised earlier this year. Pamplona was advised by Jefferies and Lowenstein Sandler LLP.

About Pamplona Capital Management
Pamplona Capital Management is a London and New York based specialist investment manager established in 2005 that provides an alternative investment platform across private equity, fund of hedge funds and single manager hedge fund investments. Pamplona Capital Management, LLP manages over USD 10 billion in assets across a number of funds for a variety of clients including public pension funds, international wealth managers, multinational corporations, family offices and funds of hedge funds. Pamplona is currently managing its fourth private equity fund, Pamplona Capital Partners IV LP, which was raised in 2014. Pamplona invests long-term capital across the capital structure of its portfolio companies in both public and private market situations. Please see Pamplonafunds.com for further information.