Comvest Partners has sold its portfolio company Convey Health Solutions to New Mountain Capital.
Comvest first invested in Convey in July 2009 when it completed the take private of NationsHealth, a provider of home delivery of diabetes supplies and insulin pumps, medications and other medical products and a provider of marketing, enrollment and member service to insurers offering Medicare Part D prescription drug plans and other Medicare insurance coverage. In December 2012, Comvest sold the medical products operations of the company to publicly-traded Alere, and changed the name of the company from NationsHealth to Convey Health Solutions.
Today, Convey Health Solutions provides healthcare technology and business process outsourcing services that support Medicare prescription drug plans, Medicare Advantage plans, and other related provider benefit programs. Services include eligibility and enrollment processing, member services, premium billing, payment processing, reconciliation, and other related services. The company, led by CEO Stephen Farrell, is headquartered in Fort Lauderdale and has additional offices in Florida, Arizona, Illinois, and the Philippines (www.conveyhealthsolutions.com).
“Steve Farrell and the rest of Convey’s management team have been great partners,” said Michael Falk, Chairman and Managing Partner at Comvest Partners. “During our ownership period, we were able to transition the company from principally a Medicare focused durable medical equipment company to a provider of technology solutions for government-sponsored health insurance plans.”
Comvest Partners provides debt and equity to middle-market companies. For debt investments the firm will invest from $10 million to $50 million per transaction in companies with at least $15 million of revenue and EBITDA of at least $3 million. For equity investments the firm will invest from $35 million to $125 million of equity per transaction in companies with $50 million to $1 billion of revenue that have positive or negative EBITDA. Comvest is based in West Palm Beach (www.comvest.com).
“With Comvest’s support and financial stewardship, Convey’s business has grown significantly over the last few years,” said Mr. Farrell. “We enjoyed working with the Comvest team and appreciate the strategic guidance they have provided to the company.”
New Mountain currently manages over $15 billion of private and public equity funds. The firm is an industry generalist but has specific expertise in education, health care, software, business services, logistics, specialty chemicals, federal services, media, consumer products, financial services and insurance, environmental services, infrastructure and energy. New Mountain was founded in 1999 and is headquartered in New York (www.newmountaincapital.com).
Houlihan Lokey (www.HL.com) was the financial advisor to Convey Health on this transaction.
© 2016 Private Equity Professional • 10-6-16
