The Riverside Company has sold HEALTHCAREfirst, a provider of software to home health agencies and hospices. This transaction is Riverside’s 10th exit of 2012.
HEALTHCAREfirst (HCF) provides web-based software that helps home health agencies and hospices manage their clinical and business operations. The company also provides outsourced revenue cycle management and consulting services. The company is based in Ozark, MO (www.healthcarefirst.com).
Riverside acquired HCF in 2008 and completed two add-on acquisitions while helping HCF become one of the largest software providers to the home health and hospice market. During the course of ownership HCF quadrupled its revenue.
“We were able to help HCF take its compelling service offerings, which improve patient and personnel management and improve billing and reimbursement processes, and expand the company through new customers, geographies and services,” said Riverside Managing Partner Loren Schlachet. “HCF’s growth has been remarkable, and we’re proud to be part of it,” said Riverside Principal Jack Nestor.
Working with Mr. Schlachet and Mr. Nestor for Riverside on the sale were Operating Partner Jeff Goodman, Senior Associate Brad Resnick, and Centralized CFO Dan Stankey. Riverside Origination Principal Amy Margolis worked with the deal team to facilitate the sale of the business.
The Riverside Company is a private equity firm focused on the smaller end of the middle market (“SEMM”). Riverside specializes in investing in SEMM companies (those valued up to $200 million) and partners with management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 290 transactions with a total enterprise value of more than $6 billion. The firm is headquartered New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).
Piper Jaffray acted as exclusive financial advisor to Riverside on the transaction, while Deloitte provided accounting and tax support and Jones Day provided legal counsel.
© 2012 PEPD • Private Equity’s Leading News Magazine • 9-7-12
