May 23, 2017
AURORA, Ohio, May 23, 2017 /PRNewswire/ -- PartsSource, a leading provider of medical parts and supplies procurement solutions for hospitals, outpatient clinics, and physician offices, announced that it has been acquired by Great Hill Partners, a leading growth-oriented private equity firm. The acquisition will allow the company to accelerate its sales and marketing investments and further position the company to execute on its growth plan.
"PartsSource's e-commerce technology has disrupted a workflow that has historically been offline, allowing providers to maintain their facilities efficiently and more cost effectively," said Mark Taber, a Managing Partner of Great Hill. "We are delighted to partner with Phil Settimi and the entire PartsSource team to help them continue to expand their market leadership."
Founded in 2001, PartsSource's core electronic spend management platform automates the procurement process of medical parts and supplies from product sourcing to financial settlement, incorporating proprietary analytics to optimize compliance, efficiency, cost and quality. In addition to automating the highly complex workflow associated with procurement, the Company created and maintains the industry's only online, fully integrated parts procurement marketplace. PartsSource facilitates more than 1.5 million transactions annually by connecting thousands of suppliers and OEMs to over 3,300 hospitals worldwide.
"PartsSource has experienced rapid growth in recent years and has emerged as the leader in the medical supplies procurement space, empowering our customers to drive costs out of the healthcare delivery system while improving outcomes," said Phil Settimi, M.D., CEO of PartsSource. "We are pleased to collaborate with Great Hill, who will offer both the experience and resources to fully maximize the value of our healthcare solution, while maintaining our commitment to first-class customer service, innovation and quality."
Rafael Cofiño, a Partner with Great Hill Partners, added, "We believe PartsSource has tremendous growth potential as procurement teams within healthcare seek ways to digitize their workflows via a one-stop-shop for medical parts and supplies. It has been exciting to watch them build the online category leader."
"I am proud of the team that has contributed to PartsSource's emergence as the leading procurement solution for the healthcare industry and believe we have found the right partner in Great Hill to build on its accomplishments to date," said founder and Executive Chairman, Ray Dalton.
PartsSource will join Great Hill Partners' portfolio of healthcare companies including Qualifacts, RxBenefits, PlanSource, Passport Health Communications (acquired by Experian for $850 million), SterilMed (acquired by Johnson & Johnson) and bSwift (acquired by Aetna for $400 million). Additionally, Great Hill has extensive experience in e-commerce and electronic marketplaces, including companies such as Wayfair, The Shade Store, Cliq Studios and Momondo (acquired by The Priceline Group for $550 million).
As part of the transaction, Mark Taber, Rafael Cofiño and Cheng Li will be joining the PartsSource's Board of Directors. Sellers in the transaction include Ray Dalton, Polaris Partners and Primus Capital Funds. Financial terms of the deal were not disclosed.
Robert W. Baird & Co. served as exclusive financial advisor to PartsSource. Goodwin Procter LLP served as legal advisor to Great Hill Partners. Jones Day LLP served as legal advisor to PartsSource.
PartsSource®, based in Aurora, OH, provides the medical equipment service industry with proprietary software solutions related to the acquisition and life cycle management of medical repair parts. The company has been recognized by clinical engineers and healthcare executives alike for its unique ePartsFinder® application for its ability to increase department efficiencies while reducing costs through its award-winning SmartPrice™ technology. Founded in 2001, PartsSource continues to be the recipient of numerous local, regional and national awards for growth, customer satisfaction, and community service
For more information, please visit www.partssource.com.
About Great Hill Partners
Great Hill Partners is a private equity firm that has raised over $5 billion in commitments since inception to finance the expansion, recapitalization, or acquisition of growth companies in a wide range of sectors in business-to-business and business-to-consumer industries including software, financial and healthcare technology, digital media, eCommerce, and internet infrastructure. Great Hill targets investments of $25 million to $200 million.
For more information, please visit www.greathillpartners.com.
Mary Kate Bertke
Director of Investor Relations
Great Hill Partners, LP
SOURCE Great Hill Partners