Recondo is a provider of revenue cycle services and payment solutions for the healthcare industry. In fiscal 2012 the company increased revenue by 94% and added 266 new hospital customers. Additionally, Deloitte Touche placed Recondo at #9 in its annual list of the Deloitte Technology Fast 500 and Inc. Magazine ranked Recondo at #222 in its annual Inc. 500 list. The company is based in Greenwood Village, CO (www.recondotech.com).
The investment will be used by Recondo to accelerate its organic growth rate, enhance its customer support teams, and complete strategic acquisitions. Phil Yates, a founding Partner of Bregal Sagemount, and Pavan Tripathi, Senior Associate, will join the company’s board of directors.
“Recondo brings innovative, best-in-class technology to the problem of proper payments for hospitals, Integrated Delivery Networks, and Accountable Care Organizations,” said Mr. Yates. “The US healthcare system spends 15 plus percent of revenue to process and collect payments compared to one to two percent in other efficient markets. We are excited to invest in Recondo, the market leader changing this paradigm.”
Bregal Sagemount makes control and non-control investments of $15 million to $150 million in companies active in the following sectors: business services, software and technology, information and media, financial services, and healthcare. The firm makes both equity and/or junior debt investments and has $500 million in committed capital. Bregal Sagemount is based in New York (www.bregalsagemount.com).
“We are very pleased that the seasoned partners of Bregal Sagemount have placed their confidence in Recondo Technology,” said Rick Adam, Recondo Founder and CEO. “This investment will be used to significantly expand our sales and marketing efforts, take client service to a new level, and broaden our product offerings through internal development and strategic merger and acquisition opportunities.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 1-24-13