revenue cycle services

RLH Exits Cymetrix

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Riordan, Lewis & Haden has sold its portfolio company Cymetrix Corporation, a provider of revenue cycle management services to hospitals, to Navigant for $75 million. Riordan, Lewis & Haden first invested in Cymetrix in June 2005.

Cymetrix is a provider of outsourced business services to major for-profit, faith-based, and community hospital systems. The company serves over 200 hospitals nationwide.  Cymetrix helps its clients improve speed, accuracy, and effectiveness at each stage in the hospital revenue cycle, including gathering patient data, coding medical records, and collecting receivables. Cymetrix is headquartered in Irvine, CA (www.cymetrix.com).

Riordan, Lewis & Haden invests in high growth, lower middle market companies that have revenues from $20 million to $150 million. Sectors of interest include business services, healthcare, and government services. The firm currently manages over $600 million of assets and is actively seeking new portfolio companies. Riordan, Lewis & Haden is based in Los Angeles (www.rlhequity.com).

Navigant (NYSE: NCI) is a specialized expert services firm that assists clients in creating and protecting value in the face of business risks and opportunities. 2012 revenues were $845 million and the company has over forty offices across the United States, Canada, Europe, and Asia. Navigant is headquartered in Chicago (www.navigant.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 5-16-14

Audax Acquires Array Services Group

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United Recovery Systems, a portfolio company of Audax Private Equity, has completed the acquisition of Array Services Group, a provider of revenue cycle management services.

Array is a regionally-focused provider of revenue cycle management, receivables management, and call center services to hospitals, healthcare systems, retail businesses, and financial service institutions.  The company is headquartered northwest of Minneapolis in Sartell, MN (www.arraysg.com).

United Recovery Systems (URS) is a provider of third party contingency debt collection services, specializing in the collection of early-stage pre-charge off and post-charge off receivables. URS serves clients in the credit card, retail, healthcare and auto loan industries. The company has offices in Texas, Oklahoma, Arizona, Illinois, Kentucky and Maryland and is headquartered in Houston (www.unitedrecoverysystems.com).

Since Audax’ acquisition of United Recovery Systems in December 2008, Array is the fourth add-on acquisition the company has completed. The three previous add-on acquisitions include Financial Health Strategies (Gaithersburg, MD) in January 2014; Enterprise Recovery Systems (Oak Brook, IL) in March 2012, and Plaza Recovery (New York, NY) in October 2011.

“The acquisition of Array further expands URS’ capabilities as a provider of revenue cycle management services to the healthcare end market. URS will also leverage Array’s offerings in the financial services vertical. URS continues to expand as a diversified accounts receivable management provider with expertise in financial services, education, and healthcare. We will continue to pursue strategic add-on acquisitions that complement URS’ industry-leading service offering,” said Young Lee, Managing Director of Audax Group.

The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. Audax has over $5 billion in assets under management in its private equity, mezzanine, and senior debt businesses. The firm was founded in 1999 and has offices in Boston and New York (www.audaxgroup.com).

Marion Financial was the financial advisor to Array on this transaction. Marion is a merger and acquisition advisory firm serving clients throughout the United States. Marion’s strengths and industry experience includes ARM services (receivables management & outsourcing, debt collection, credit reporting, and medical billing companies), RCM healthcare services (primarily back office & niche revenue cycle management services), and various other business-to-business service companies. Marion Financial was founded by Thomas Edens in 1988 (www.marionfinancial.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 4-4-14