Combined Company Will Deliver Industry’s First Solution Serving Full Continuum of Care for Rehab Therapy
PITTSBURGH, PA – Net Health, the leading provider of cloud-based software solutions for specialized outpatient care, announced today that it has entered into an agreement to acquire Optima Healthcare Solutions (Optima), the premier provider of cloud-based electronic medical record software for contract therapy companies, skilled nursing and assisted living facilities, outpatient therapy clinics, home health therapy providers and hospice organizations. The transaction is expected to close in July.
The combination of these two companies creates one industry leader serving multiple specialized clinical settings throughout the continuum of care—from the hospital to the patient’s home and all points in between. Encompassing leading positions in rehab therapy, wound care, hospice care, employee health, and occupational medicine, Net Health will offer provider organizations best-in-class interoperability, analytics, and ease of use.
The combined company will serve patients in more than 14,000 facilities across North America.
Anthony Sanzo, Net Health Chairman and CEO, stated, “We are extremely excited about what this acquisition will bring to healthcare providers across our customer base. Both companies have a legacy of designing purpose-built, innovative solutions that have delighted providers for over two decades. Our combined products, expertise, talent, and resources will accelerate our ability to deliver the fully-connected data and predictive capabilities healthcare providers need to thrive in a value-based world.”
Josh Pickus, Optima’s President and CEO, added, “This transaction will allow us to expand our vision of enabling the cross-continuum care that patients deserve and our healthcare system demands. As our customers navigate upcoming regulatory change, this transaction positions us to do even more to help them deliver industry-leading provider experiences and patient outcomes.”
Patrick Colletti, Net Health’s COO, commented, “This combination will accelerate our innovation cycle and create an even broader set of opportunities for our customers and the patients they serve. We look forward to blazing new trails for our customers while becoming the workplace of choice for our employees to grow personally, professionally, and in our communities.”
Anthony Sanzo, Net Health’s Chairman and CEO, will continue in his role through the integration of the two companies. Post-integration, he will become Net Health’s Executive Chairman. Josh Pickus will join Net Health as President and Chief Integration Officer and will succeed Sanzo as CEO when the integration is complete. Patrick Colletti will continue to serve in his role as Net Health’s COO during the integration and become the company’s Chief Innovation Officer.
Net Health will continue to be headquartered in Pittsburgh, PA, serving customers nationwide with office locations in six states.
Net Health is a portfolio company of The Carlyle Group and Level Equity. Investment funds affiliated with each will invest additional equity in the deal. Their additional investment highlights both firms’ strong partnership with Net Health management and continued support of Net Health’s strategic plan to build leading products, both organically and via targeted acquisitions, that increase revenue, reduce costs, and improve clinical outcomes for healthcare providers and their patients.
Selling shareholders include Optima’s prior partner, Alpine Investors. Houlihan Lokey served as exclusive financial advisor to Optima, while Wilson Sonsini Goodrich & Rosati acted as legal counsel. Latham & Watkins LLP, Alvarez & Marsal Private Equity Performance Improvement, LLC, and PwC served as advisors to Net Health. Financial details of the transaction were not disclosed.
About Net Health
Net Health is the leader in cloud-based software solutions for specialized outpatient care. Known for being experts in The Art of the Right Fit®, our fully interoperable EHR solutions serve five medical specialty markets and offer clients an end-to-end solution that includes practice management tools, clinical workflow documentation, revenue cycle management, expert coaching, and analytics. Net Health serves healthcare professionals in 98% of the largest hospital chains as well as private practices around the country—driving workflow in more than 3,000 urgent care, wound care, physical therapy, speech and language therapy, occupational therapy, occupational medicine, employee health, and workplace medicine facilities each day. For more information visit www.nethealth.com.
Optima Healthcare Solutions provides cloud-based solutions for post-acute care providers, including contract therapy companies, skilled nursing and assisted living facilities, continuing care retirement communities, outpatient therapy clinics and hospices. For over 25 years, Optima has led the industry with therapy management software, and today more than 11,000 sites of service rely on our full range of clinical, operational and billing solutions to increase business performance, ensure compliance and improve care for millions of patients every year. www.optimahcs.com
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $222 billion of assets under management as of March 31, 2019, Carlyle’s purpose is to invest wisely and create value on behalf of our investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,725 people in 33 offices across six continents. www.carlyle.com.
About Level Equity
Level Equity is a growth equity firm focused on providing capital to rapidly growing software and internet companies with offices in New York, NY and San Francisco, CA. Level has raised over $1.7 billion since inception across a series of long term committed investment partnerships. Principals at Level Equity have invested in 85 technology businesses over the past 20 years. For more information about Level Equity, visit www.levelequity.com.
About Alpine Investors
Alpine Investors is a software and services-focused private equity firm that specializes in majority buyouts of founder-owned businesses and corporate carve-outs. Alpine differentiates itself through its PeopleFirst strategy and CEO-in-Residence (CIR) program, where Alpine partners with CEOs first and places them into companies as part of the transaction. This provides a distinct solution for founders and companies that desire additional management support post-transaction. Alpine is based in San Francisco, Calif. For more information, visit www.alpineinvestors.com.