RoundTable Healthcare Partners Announces Sale of MedAssist Holding, Inc. to Firstsource Solutions Limited
LAKE FOREST, IL, August 29, 2007 — RoundTable Healthcare Partners, an operating-oriented private equity firm focused exclusively on the healthcare industry, announced today that it has entered into a definitive agreement to sell one of its portfolio companies, MedAssist Holding, Inc. (“MedAssist”), to an affiliate of Firstsource Solutions Limited (“Firstsource”) for $330 million in cash. Mumbai-based Firstsource (NSE: FSL.NS, BSE: FSL.BO) is among India’s leading business process outsourcing companies providing business process management services to global leaders in Banking & Financial Services, Telecom & Media and Healthcare.
MedAssist is a leading provider of outsourced revenue cycle management services to the healthcare industry, including eligibility services, receivable management services, and collections services. RoundTable acquired a majority interest in MedAssist in May 2003. Following its original investment, RoundTable led and supported MedAssist’s strategic acquisitions of Argent Healthcare Financial Services, Inc. in 2004, as well as Twin Medical Transaction Services, Inc. and Capstone Solutions LLC in April 2006.
Joseph F. Damico, a Founding Partner of RoundTable and the Chairman of the Board of MedAssist said, “The MedAssist team, led by founder and CEO, Michael Shea, COO, Tom Watters, and CFO, Frank Stellato, has established MedAssist as a national industry leader in the healthcare revenue cycle management industry. They have grown the company’s revenue and profitability significantly, expanded the company’s geographic footprint and service offerings, and increased the company’s customer base. They will be an excellent strategic partner with Firstsource as they work together to serve their customers and pursue their growth initiatives.”
Michael A. Shea commented, “Our new partnership with Firstsource will be positive for our customers and our employees. The entire MedAssist management team is excited to be part of a larger company with both global reach and resources and a commitment to help us grow our business. Over the past four years, RoundTable has been an exceptional partner. They have fully delivered on the value-added operational benefits which they promised when we first decided to partner with them. Their transactional expertise was key to making several successful and complementary acquisitions as well as consummating our new partnership with Firstsource.”
The sale of MedAssist marks the third major portfolio realization for RoundTable’s $400 million Fund I which closed in March 2002. Previously, Sabex Holdings Ltd. was sold in August 2004 to Sandoz for $565 million and American Medical Instruments Holdings, Inc. was sold to Angiotech Pharmaceuticals, Inc. for $785 million in February 2006. Additional realizations for Fund I investors have come from four portfolio company recapitalizations. Robert W. Baird & Co. and Kirkland & Ellis LLP advised MedAssist on this transaction.
“MedAssist is another example of the strength of RoundTable’s partnership model,” said Lester B. Knight, Managing Partner of RoundTable. “Working in concert with MedAssist’s owner/founder and management team, RoundTable focused on adding value to the business through the combination of our operational orientation, transaction expertise, healthcare relationships and access to senior management talent. The resulting sale of MedAssist captures tremendous value for all our stakeholders. For our investors, the transaction represents a return of nearly five times RoundTable’s invested equity capital.”
About RoundTable Healthcare Partners
RoundTable Healthcare Partners, Lake Forest, IL, is an operating-oriented private equity firm focused exclusively on the healthcare industry. RoundTable partners with companies that can benefit from its extensive industry relationships and proven operating and transaction expertise. RoundTable has established a successful track record of working with owner/founders, family companies, management teams, entrepreneurs, and corporate partners who share a vision and believe in the value creation potential of its partnership model. RoundTable currently manages $1.1 billion in capital, including two equity funds totaling $900 million and a subordinated debt fund of $200 million. More information about RoundTable Healthcare Partners can be found at www.roundtablehp.com .