Probo Medical, a portfolio company of Avista Capital Partners, has agreed to acquire Alpha Source Group, a portfolio company of Baird Capital since April 2015. Avista acquired Probo in February 2022 from Varsity Healthcare Partners.
Milwaukee-headquartered Alpha Source Group operates through three subsidiaries – Alpha Source Biomed Solutions, BC Technical Imaging Solutions and Medical Optics Surgical Solutions.
Alpha Source is a provider of technical field service, depot repair, equipment refurbishment and resale, and parts distribution services to OEMs, ISOs, asset managers, hospitals, distributors and resellers. Alpha Source has more than 100 field-based engineers and, according to the company, operates one of the largest field service organizations for diagnostic imaging equipment in North America.
Alpha’s field service organization is supported by in-house expertise at four Centers of Excellence located in Salt Lake City, Utah; Jeffersonville, Indiana; Tamarac, Florida; and Milwaukee, Wisconsin. These centers specialize in repair, refurbishment, parts harvesting and distribution of multi-modality medical equipment, including nuclear medicine, PET, CT, MRI, PET/CT, ultrasound, bone mineral density, medical batteries, and biomedical equipment.
Probo Medical is a seller and lessor of new and refurbished diagnostic imaging equipment including ultrasound, C-Arm, X-Ray, mammography, fluoroscopy, MRI and CT. The company’s services include equipment sales and rentals, depot repair service, equipment installation and de-installation, and field-based repair.
Probo, led by CEO Michael Asmer, was founded in 2014 and is headquartered north of Indianapolis in Fishers, Indiana.
The acquisition of Alpha Source expands Probo to more than 800 employees worldwide across nearly 20 locations throughout North America, Europe, and the United Kingdom.
“This acquisition is transformational in nature for both Probo Medical and Alpha Source,” said Mr. Asmer. “Probo has built a scalable platform in the ultrasound market in North America, capable of supporting customers with ultrasound system sales, repairs, service, applications training, and spare parts at a quality and value level that leads the market. Alpha Source’s capabilities, team and relationships provide us with the ability to extend that platform wider and deeper into new imaging modalities like nuclear medicine, CT and PET/CT.”
The buy of Alpha Source by Probo is the company’s fourth add-on acquisition since being acquired by Avista in April 2015. The three earlier add-ons were California-based Davis Medical Electronics (November 2023), Georgia-based National Ultrasound (May 2023), and South Carolina-based Ultra Select Medical (April 2023).
New York City-based Avista makes control or influential minority investments in growth-oriented healthcare businesses with a specific interest in pharmaceuticals, medical devices, outsourced pharmaceutical services, distribution, and consumer-driven healthcare. In March 2021, the firm held a final, oversubscribed, and hard cap close of Avista Capital Partners V LP with total committed capital of $1.2 billion.
Baird Capital invests in lower middle-market B2B technology and services companies with $10 million to $100 million in revenue. The firm was founded in 1989 and is based in Chicago.
Brown Gibbons Lang & Company, through its healthcare and life sciences investment banking team, was the financial advisor to Alpha Source Group on the transaction.
© 2024 Private Equity Professional | February 23, 2024
