Housatonic Partners has acquired Accurate Monitoring, a provider of outsourced medical monitoring services.
Accurate Monitoring is a provider of outsourced intraoperative neurophysiological monitoring (IONM) services to hospitals and surgical groups throughout New York and New Jersey. IONM is the use of electrophysiological methods – such as electroencephalography (EEG) and electromyography (EMG) – to monitor the functional integrity of certain neural structures (e.g., nerves, spinal cord and parts of the brain) during surgery. Accurate, accredited by The Joint Commission, was founded in 2007 and is headquartered near New York City in Fairfield, NJ (www.accuratemonitoring.com).
Since its founding the company has achieved strong revenue growth and sought a growth equity partner to continue regional and national expansion. “After years of successful growth in New Jersey and New York, we are ready to expand our clinical services to new markets and are pleased to be partnering with Housatonic Partners,” said Accurate CEO Frank Gazzillo. “The expertise and capital that Housatonic brings to the table should enable us to expand our ability to provide high quality outsourced clinical services to new markets.”
Housatonic Partners invests from $10 million to $30 million in buyout or recapitalization transactions. Typical investment targets will have internal revenue growth opportunities; recurring revenues; high EBITDA margins; moderate capital needs; and strong management teams. The firm was founded in 1994 and has offices in Boston and San Francisco (www.housatonicpartners.com).
Capstone Partners (www.capstonepartnerslp.com) was the financial advisor to Accurate Monitoring on this transaction. “Healthcare providers are increasingly 
relying on outsourced service providers with the experience and clinical skill sets to help enhance patient safety, lower costs through reduced patient stays, respond quickly to fluctuating patient levels/demand, and avoid expensive and resource consuming hospital readmissions,” said Eric Williams, a Managing Director of Capstone. “As a result, we expect the outsourced clinical services sector to experience heightened M&A activity as private equity and strategic suitors look to capitalize on favorable demographic and industry trends.”
“The IONM sector, which is highly fragmented and benefiting from an aging population and an increased prevalence of chronic disease, has seen two major deals completed within the past few months. In addition to the Accurate transaction, medical device company NuVasive acquired IONM provider Biotronic NeuroNetwork for $98 million in July 2016,” said Mark Surowiak, a Director at Capstone.
© 2016 Private Equity Professional • 9-29-16
