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PE firms tackle workforce management; NMS Capital invests in diagnostic imaging

NMS-backed DirectMed acquires LBN Medical.

Good morning, Hubsters. MK Flynn here, with today’s Wire.

Workflow. Employment issues are top of mind, with the January jobs report delivering some surprises. Payrolls jumped by 467,000, compared with 199,000 in December; but the unemployment rate rose to 4.0 percent, up from 3.9 percent the previous month. The report serves as a reminder that workforce management challenges continue to mount. In recent months, private equity firms have been snatching up tech companies that aim to tackle the problems, including scheduling busy professionals and managing fluid workspaces in an era marked by hybrid work and thoughts of return-to-office.

In the first five weeks of 2022, we’ve seen a slew of PE deals focused on these issues, as PE Hub reporter Aaron Weitzman observes. For example, earlier this week, BigHand, a portfolio company of Levine Leichtman Capital Partners, announced the acquisition of Iridium Technology from Polaris Growth Fund. Iridium provides business intelligence and analytics software to law firms. “LLCP is attracted to vertical software providers in end markets that we know well – which includes legal firms and legal practitioners to improve their efficiency and productivity,” managing partner Michael Weinberg said. Iridium has “a global, resilient customer base and is growing both organically and through continued M&A activity in the sector. We are excited for its prospects and would consider additional investments in other sectors with similar characteristics.”

Diagnostic imaging. In healthcare deal news this morning, DirectMed Parts & Service, a portfolio company of NMS Capital, said it has acquired LBN Medical. Headquartered in Aalborg, Denmark, LBN is a reseller of aftermarket diagnostic imaging equipment. “Providers around the world are looking for cost-effective solutions to acquire and maintain equipment as they continue to grow their practice,” said David Peterson, NMS managing director. “The combination of DirectMed and LBN supports that exact need in the marketplace.”

Next week. On Monday, our series of Q&As with high-profile PE pros will continue with Brent Gledhill, president and CEO of William Blair, who will discuss how private equity and investment banking have changed over the last 25 years and what’s ahead in 2022. Check out our previous interviews with Pam Hendrickson, vice-chairman of The Riverside Company; Randy Schwimmer, co-head of senior lending at Churchill Asset Management and founder and publisher of The Lead Left; David Grain, founder and CEO of Grain Management; and Beatrice Mitchell, co-founder and managing director of Sperry, Mitchell & Co.

Deal of the Year. There’s just one week left to send in your nominations; the deadline is Friday, Feb. 11. So get your candidates in now. Send them to Chris Witkowsky at cwitkowsky@buyoutsinsider.com. Visit here for more info about the awards.

Stay safe this weekend, as yet another winter storm sprawls its frigid way across the country.

All the best, MK