Berenson Capital, a specialist investor in the software and technology-enabled services sector, has acquired Interactive Digital Solutions.
Interactive Digital Solutions (IDS) is a provider of cloud-based high definition video conferencing, streaming video, digital signage, telepresence, and virtual patient observation services and systems used in the healthcare, government and education sectors. The company’s services include consulting, design, installation, management and technical support.
One of IDS’ products is MedSitter, a two-way video/audio observation tool that can monitor up to 10 patients at any given time. The MedSitter product utilizes motion detection, camera control, visual incident logging and includes electronic medical records integration. IDS was founded in 2000 by CEO Tracy Mills and is headquartered northeast of Indianapolis in Noblesville, Indiana.
“More so than ever before, this past year has highlighted the importance of strategically leveraging best-of-breed video solutions to foster communication and collaboration both internally and externally across organizations,” said Mr. Mills. “IDS has thrived by continuously helping clients across all segments overcome a variety of challenges. We look forward to the partnership with Berenson Capital as we continue to invest in our portfolio of next-generation solutions.”
At the closing of the acquisition, David Fetterolf joined IDS as its new executive chairman. Mr. Fetterolf has more than 27 years of experience in healthcare technology and service companies. Most recently he was the president of Stratus Video, a Kinderhook-owned provider of video remote interpretation, over-the-phone interpretation and in-person interpretation services used in the healthcare industry. Stratus Video was sold by Kinderhook in January 2020 to AMN Healthcare Services for $475 million (a 14x adjusted EBITDA multiple).
“IDS’s portfolio of solutions is driving incredible value for their clients across all segments of the market. In healthcare specifically, their proprietary MedSitter solution is revolutionizing how healthcare facilities address reducing patient falls within their facilities,” said Mr. Fetterolf. “I look forward to supporting the company as it continues providing best-in-class solutions into all markets.”
“Within the past year, the COVID-19 pandemic has driven significant interest in and spurred widespread acceptance of telehealth solutions,” said Mohammed Ansari, a managing director and the head of private equity at Berenson Capital. “IDS plays a key role in meeting the needs of this rapidly expanding market through its telehealth communications solutions and the MedSitter patient monitoring tool. We look forward to working with IDS as the company continues to grow in this market.”
“Berenson Capital is committed to partnering with technology companies that have built compelling, differentiated products in large and growing markets,” said Brendyn Grimaldi, a principal at Berenson Capital. “We are excited to partner with Tracy, David and the entire IDS team to continue to expand the company’s portfolio of leading solutions and drive penetration of its industry-leading MedSitter product.”
Berenson Capital is a unit of Berenson & Company, a New York City-based investment bank. The firm invests in software and tech-enabled services companies that have at least $15 million of revenue.
© 2021 Private Equity Professional | June 15, 2021
