Silver Oak Services Partners has completed the sale of its equity interest in portfolio company Convergent Resources to strategic buyer Account Control Technology Holdings. Silver Oak first invested in Convergent Resources in June 2007.
Convergent Resources is a provider of outsourced receivables management and revenue cycle management services to the utility, telecom, financial services and healthcare sectors. The company offers a suite of services, including first-party outsourcing, third-party early and late stage collections, insurance follow-up, extended business office services and patient access services for hospitals. Convergent has over 2,800 employees and operates fifteen office locations. The company was founded in 1998 and is headquartered in Atlanta (www.convergentusa.com).
The buyer of Convergent, Account Control Technology Holdings (ACT), represents a group of companies offering outsourced business services. Its flagship company, Account Control Technology, provides consultative debt management, collection, call center and business office services for education, government and consumer entities. The company was founded in 1990 and is based in Canoga Park, CA (www.accountcontrol.com).
“We believe the acquisition of Convergent by ACT is a great outcome for all parties,” said Dan Gill, Managing Partner at Silver Oak. “Our management team did a remarkable job growing the business in a difficult environment, positioning Convergent well to continue its strong momentum in its new partnership with ACT.”
Silver Oak makes control investments of $10 million to $30 million in companies with revenues from $15 million to $150 million and EBITDAs from $3 million to $20 million. Sectors of interest include business services, healthcare services, and consumer services. Silver Oak is based in the Chicago suburb of Evanston (www.silveroaksp.com).
During Silver Oak’s ownership, Convergent expanded into new lines of business such as Patient Access, developed near-shore capabilities with a facility in Guatemala, made investments in technology and improved operating efficiencies. As a result, Convergent grew the business nearly 35% during the period of Silver Oak’s investment.
“We are very appreciative of the support and guidance from the Silver Oak team over the last seven years. Convergent is a much stronger business with significant momentum due to the strength of our team but also Silver Oak’s investments in the business and its strategic counsel,” said Mike Meyer, CEO of Convergent.
© 2014 PEPD • Private Equity’s Leading News Magazine • 5-21-14
