DFW Capital Partners has completed the sale of its portfolio company, SoftWriters Holdings, a provider of pharmacy management services, to TA Associates. DFW partnered with Tri-State Bank, Susquehanna Bank, Greyrock Capital Group and CIGNA Insurance in the SoftWriters investment.
SoftWriters provides pharmacy management technology for institutional pharmacy providers primarily in the long-term care (LTC) industry. Pharmacy clients include assisted living and skilled nursing facilities, continuing care retirement communities, correctional facilities and other LTC enterprises. SoftWriters’ products address pharmacies’ day-to-day operational needs such as pharmacy management, facilities management, prescription order entry, electronic claims adjudication, invoicing and pharmacy-client connectivity. The company was founded in 1990 and is based near Pittsburgh in Allison Park, PA (www.softwriters.com).
“We have had the good fortune of investing in a terrific company with a trusted, talented management team. It has been gratifying to watch CEO Tim Hutchison and his colleagues develop the organization and drive significant growth during our ownership, culminating in an outstanding return for our investors. We wish them the best of success with their new partners,” said Keith Pennell, Managing Partner with DFW.
DFW originally invested in SoftWriters in 2009, leading a management recapitalization of the business from its founding shareholders. During its more than four-year hold period, SoftWriters experienced growth in market share, revenues and earnings, as it cemented itself as the premier provider of enterprise application software and related transaction services to the institutional pharmacy industry.
SoftWriters will continue to be led by Tim Hutchison (CEO) and Chris Delposen (CFO) and with TA’s backing plans to continue to expand its market presence as well as develop and deploy new technology offerings to the pharmacy marketplace.
“We have thoroughly enjoyed our partnership with DFW as we have transformed SoftWriters into the market leader in the institutional pharmacy technology industry. Their guidance and expertise has proven invaluable to us along the way, and has helped position ourselves for our future with TA,” said CEO Tim Hutchison. “We are looking forward to forging an exciting growth path with our new investors, and continuing to build SoftWriters for the benefit of its customers and stakeholders.”
DFW Capital Partners invests in lower middle market companies. Sectors of interest include outsourced healthcare and business services, including clinical services, specialty distribution, automated dispensing and pharmacy technology. DFW is headquartered in Teaneck, NJ, and maintains an office in Chevy Chase, MD (www.dfwcapital.com).
“SoftWriters’ products truly empower long-term care pharmacies, helping them improve service to their LTC facility clients,” said Mark Carter, a Director at TA Associates who will join the company’s Board of Directors. “FrameworkLTC is considered by many to be the leading product in the industry based on functionality, ability to interface with long-term care facilities and clinical systems, and an easy-to-use web portal. SoftWriters is a profitable, growing company with leading technology, highly recurring revenues and a diversified customer base. TA Associates is excited to make this investment to help SoftWriters continue its rapid growth.”
TA Associates makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. Since founding in 1968, TA has invested in over 425 companies globally and has raised more than $18 billion in capital. The firm was founded in 1968 and has offices in Boston, Menlo Park, London, Mumbai and Hong Kong (www.ta.com).
Robert W. Baird & Co., Inc. represented SoftWriters on this transaction.
© 2013 PEPD • Private Equity’s Leading News Magazine • 9-17-13
