Kinderhook Industries has acquired CSDVRS from M/C Partners, Providence Equity Partners and Communication Service for the Deaf. CSDVRS provides services that are used by deaf and hard of hearing individuals to communicate with any hearing person through certified sign language interpreters. M/C Partners first invested in CSDVRS in 2006.
CSDVRS operates two interpretation services divisions: ZVRS (Z-Video) and Stratus Video Interpreting (Stratus). Z-Video provides video relay services to the deaf and hard of hearing, allowing them to communicate with hearing individuals over video telephones or similar devices such as iPads, via American Sign Language interpreters. The Stratus division provides interpretation services to the healthcare, legal and enterprise markets – connecting clients with interpreters in over 180 spoken and signed languages on a video on-demand basis. CSDVRS is headquartered in Clearwater, FL (www.csdvrs.com).
“CEO Sean Belanger and his management team have built Z-Video into a nationally recognized provider of video relay services,” said Chris Michalik, Managing Director at Kinderhook, “which enable deaf and hard of hearing individuals to communicate with hearing people worldwide. Further, Stratus’ market leading position, technology and best-in-class service provide a unique value proposition to the hospital and legal market. Stratus offers hospitals and courtrooms all the benefits of face-to-face translation services at a fraction of the cost of a full-time interpreter. Kinderhook is looking forward to partnering with accomplished industry veterans to continue to build a leading company in the healthcare information technology industry.”
CSDVRS is the first platform investment by Kinderhook Capital Fund IV, which was raised in 2014 with $500 million of limited partner capital.
Kinderhook Industries makes control investments in companies with transaction values of $25 million to $150 million in which the firm can achieve financial, operational and growth improvements. Kinderhook pursues private equity investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations and existing small capitalization companies lacking institutional support. The firm, founded in 2003, has $1.25 billion of committed capital and is based in New York (www.kinderhook.com).
The acquisition of CSDVRS is Kinderhook’s eighth healthcare platform investment and twenty-first transaction overall in the healthcare sector. “We are excited about our partnership with Kinderhook,” said Sean Belanger, CEO of CSDVRS. “Our vision is to continue to provide world-class video translation services to the deaf and hard of hearing population in the US and the necessary tools to let the world hear the voice of the deaf community. Kinderhook’s extensive healthcare experience will enable us to pursue our next stage of growth.”
Financing for the transaction was provided by GE Capital. Kirkland & Ellis served as legal counsel to Kinderhook.
© 2015 PEPD • Private Equity’s Leading News Magazine • 2-10-15