Netsmart Announces Strategic Investment from TA Associates and GI Partners
Netsmart, a healthcare technology provider that designs, builds and delivers a technology platform including electronic health record (EHR) solutions and services, announced it has completed a recapitalization representing a strategic minority investment by TA Associates, a leading growth private equity firm with a focus on technology and healthcare, and additional investment by existing shareholder GI Partners, a leading private equity firm.
TA Associates and GI Partners signed a definitive agreement to acquire Allscripts’ shares in Netsmart, acquired in 2016 in a joint venture with GI Partners. TA Associates is one of the largest and most experienced global growth private equity firms that invests in profitable, growing companies with opportunities for sustained growth. The firm has invested in nearly 500 companies around the world. The combined investor group will own roughly 80 percent of the shares of Netsmart, while Netsmart leadership and associate shares and options account for roughly a 20 percent stake.
“Netsmart marked its 50th year in operation as an independent company in 2018,” Netsmart CEO Mike Valentine said. “With this new investor group we will continue to operate independently and be backed by investors that have tremendous access to capital to support our growth needs into this next decade.”
Valentine stated that GI Partners and TA have a history of making joint investments together, which enabled organizations to fulfill their mission.
“We are excited that this working history will allow us to not miss a beat in executing the long-term vision for Netsmart and our clients,” Valentine said. “The confidence that GI Partners and TA Associates have shown is a testament to the leadership that Netsmart has demonstrated with the communities we serve. Our next chapter will bring even more innovations and new solutions that give our clients broader capabilities to tackle rapidly changing regulatory requirements and value-based care models.”
As part of the transaction, GI Partners, a current investor, and TA Associates have aligned investment plans and time horizons to provide Netsmart with a unified investment partnership. This strategic investment supports the Netsmart road map for continued research and development investment. The investment will help expand the capabilities to meet the needs of the human services and post-acute communities of behavioral health, addiction management, public health, social services, home care, hospice and senior living communities.
The Netsmart CareFabric® is a framework of innovative clinical and business solutions and services that supports integrated, coordinated delivery of health services across the spectrum of care.
Netsmart designs, builds and delivers electronic health records (EHRs), solutions and services that are powerful, intuitive and easy-to-use. Our platform provides accurate, up-to-date information that is easily accessible to care team members in behavioral health, care at home, senior living and social services. We make the complex simple and personalized so our clients can concentrate on what they do best: provide services and treatment that support whole-person care.
By leveraging the powerful Netsmart network, care providers can seamlessly and securely integrate information across communities, collaborate on the most effective treatments and improve outcomes for those in their care. Our streamlined systems and personalized workflows put relevant information at the fingertips of users when and where they need it.
For 50 years, Netsmart has been committed to providing a common platform to integrate care. SIMPLE. PERSONAL. POWERFUL.
Our more than 1,700 associates work hand-in-hand with our 600,000+ users in more than 25,000 organizations across the U.S. to develop and deploy technology that automates and coordinates everything from clinical to financial to administrative.
Learn more about how Netsmart is changing the face of healthcare today. Visit www.ntst.com, call 1-800-472-5509, follow us on our CareThreads Blog, LinkedIn and Twitter, like us on Facebook or visit us on YouTube.
Netsmart is pleased to support the EveryDayMatters® Foundation, which was established for behavioral health, care at home, senior living and social services organizations to learn from each other and share their causes and stories.
About TA Associates
Now in its 50th year, TA Associates is one of the largest and most experienced global growth private equity firms. Focused on five target industries – technology, healthcare, financial services, consumer and business services – TA invests in profitable, growing companies with opportunities for sustained growth, and has invested in nearly 500 companies around the world. Investing as either a majority or minority investor, TA employs a long-term approach, utilizing its strategic resources to help management teams build lasting value in growth companies. TA has raised $24 billion in capital since its founding in 1968 and is investing out of current funds of $7.25 billion. The firm’s more than 80 investment professionals are based in Boston, Menlo Park, London, Mumbai and Hong Kong. More information about TA can be found at www.ta.com.
About GI Partners
GI Partners is a private investment firm based in San Francisco. The firm has raised over $17 billion in capital from leading institutional investors around the world. GI Partners' private equity team focuses on investments in the Healthcare, IT Infrastructure, Services, and Software sectors. For more information on GI Partners and its entire portfolio, please visit www.gipartners.com.
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