MHS acquires AtPar, receives $7.0 million funding from EEF
Fairfield, Connecticut, April 27, 2010 | Management Health Solutions, Inc. (MHS), a leading provider of supply chain management solutions to hospitals and healthcare providers across the United States, plans to expand the organization following two strategic moves recently completed, company officials announced.
MHS announced today the completion of a $7.0 million Series B equity investment led by Enhanced Equity Fund, L.P (EEF), a lower-middle market private equity fund focused on growth capital investing within certain sectors of the healthcare industry. The investment will be used to fund continued growth and expansion of the company’s suite of offerings.
Specifically, the secured funding allowed for the recent acquisition of AtPar, Inc., a leading developer of mobile supply chain software. The acquisition advances MHS’s clinical inventory management solution by complementing MHS’s proprietary inventory supply process, Optimal Inventory Control (OPTICSM), with mobile handheld inventory tracking technology.
“MHS has experienced revenue growth rates over 50 percent in the last several years that are even further fueled by both the right market conditions and EEF’s ongoing financial commitment,” said William Zierolf, president and CEO of Management Health Solutions, Inc.
“At a time of significant change in the healthcare industry, these milestones allow us to better serve our more than 500 clients throughout the nation. With our recent acquisition of AtPar and secured funding, MHS has an increased opportunity to play a key role in shaping the future of clinical supply chain management in the healthcare industry.”
Headquartered in Fairfield, Conn. since 2007, MHS plans to expand their local office and hire up to ten new employees over the next year, which will be an addition to their 150 employees worldwide. MHS also plans to develop key new products and services and has already begun rapidly expanding its current service offerings.
“As MHS grows, it is vital to our hospital partners that we continue investing in new cost-saving solutions through clinical materials management. We understand the importance of expanding our resources in order to successfully develop and integrate innovative products and services,” said Daniel Lubin, member of MHS’s board of directors and managing partner of Radius Ventures LLC, MHS’s existing institutional investor.
For additional information on MHS and their products and services, please visit www.mhsinc.com.
ABOUT MANAGEMENT HEALTH SOLUTIONS, INC.
Management Health Solutions, Inc. (MHS) is the leading provider of an integrated inventory management solution designed to dramatically reduce clinical supply inventory cost and streamline clinical supply chain operations, which enhances patient safety and improves financial performance. MHS combines 'best-in-class' professional services with content solutions, benchmarks, leading edge technology and mobile device management – enabling hospitals to generate a measurable return on investment. MHS serves individual hospitals and integrated delivery networks in North America. To learn more about MHS and its OPTICSM services, visit www.mhsinc.com.
ABOUT ENHANCED EQUITY FUND, L.P.
Enhanced Equity Fund, L.P. (Enhanced Equity), with over $500 million of assets under management, is focused on providing equity capital to lower-middle market growth companies (typically less than $100 million in revenues) in the healthcare industry. As part of their investment philosophy, Enhanced Equity partners with successful entrepreneurs and management teams to build value through both internal growth strategies and acquisitions in order to transform their businesses into market leaders. To learn more about Enhanced Equity, visit www.enhancedequity.com.
ABOUT RADIUS VENTURES, LLC.
Radius Ventures, LLC (Radius) is a venture capital firm focused on leading-edge health and life sciences companies. Investments are sought across the industry’s key sectors including biotechnology and pharmaceuticals, medical devices, services, and healthcare/life sciences information technology. Radius currently manages three funds with total committed capital of approximately $200 million. Generally, Radius invests up to $8 million in aggregate, as a lead or syndicate investor. For more information, visit www.radiusventures.com.
CONTACT INFORMATION
Please direct media inquiries to Kristen Hayner or Kevin Phillips at 615-254-0575. If you have questions or comments regarding company news please email us at comments@mhsinc.com