Passport Health Receives $232 Million Investment led by
Spectrum Equity Investors and Great Hill Partners
Nashville, TN (July 31, 2008) – Brentwood Capital
Advisors LLC (BCA), based in Nashville, served as exclusive financial
advisor to Passport Health Communications, Inc. in a recently completed
recapitalization in which Spectrum Equity Investors and Great Hill
Partners led a significant growth investment in Passport. Passport
offers healthcare providers and payers a comprehensive suite of revenue
cycle management solutions, enhancing the amount and timeliness of
reimbursement and increasing administrative and financial
productivity.
Following the
recapitalization, Spectrum Equity Investors and Great Hill Partners will
own a majority interest in Passport. Primus Capital Funds, which led
Passport’s minority recapitalization in 2006, on which BCA
advised, has reinvested a majority of their existing stake and has
contributed additional equity alongside Spectrum Equity and Great Hill.
The senior management team, led by CEO Jim Lackey, will continue to
retain a significant equity position in the company. Lenders Goldman
Sachs Specialty Lending Group and Ares Capital also co-invested in the
transaction.
“Passport is pleased to complete
this recapitalization to help launch our next phase of growth. We are
fortunate to be able to work with this great group of investors. Their
collective experience and resources will allow us to carry out our
long-term business plan by making continued investments in our
administrative and financial services,” said Passport Chairman and
CEO Jim Lackey. “We were also pleased to complete our fourth
project in 30 months with Brentwood Capital Advisors as our financial
advisor. In 2008, they helped us with the acquisition of Nebo Systems,
refinanced our debt and completed this complicated recapitalization
involving three private equity firms. BCA has been a key, respected
member of our team and we have enjoyed working with them.”
“Passport is recognized as a leader in the revenue cycle
management sector with an attractive business model and highly scalable
platform,” commented Kevin Murphy, Managing Partner at Brentwood
Capital Advisors. “We are proud to have worked with management and
the Board to bring in strong partners such as Spectrum, Great Hill and
Primus with the capital resources and expertise to help accelerate
Passport’s internal and acquisition growth
objectives.”
As part of the transaction, William
Collatos and Jim Quagliaroli of Spectrum Equity and Matthew Vettel and
Mark Taber of Great Hill will join Passport’s Board of Directors.
Phillip Molner of Primus and CEO Jim Lackey will remain Directors of the
company.
About Passport Health
Communications
Passport Health Communications, Inc.,
Nebo Systems, Inc. and The Cosand Group, a family of companies owned by
Passport Holding Corporation, provide health care technology to more
than 5,300 hospitals, physician practices and other health care
providers in all 50 states. The companies deliver a range of
administrative, clinical and financial tools via real-time, batch and
integrated technology to improve the efficiency and accuracy of the
revenue cycle process. For more information, visit www.passporthealth.com.
About Brentwood Capital Advisors
LLC
Brentwood Capital Advisors LLC, founded in
1999, is a privately held investment bank headquartered in Nashville,
Tennessee, providing mergers and acquisition and capital-raising
advisory services to middle-market healthcare and business services
companies. Since 2002, BCA has served as exclusive financial advisor on
25 completed healthcare transactions. More information about Brentwood
Capital Advisors can be found at www.brentwoodcapital.com.
About Spectrum Equity Investors
Spectrum Equity Investors is a leading private equity firm specializing
in investments in profitable, growing service businesses throughout
North America and Europe. Founded in 1994 with offices in Boston and
Menlo Park, Spectrum currently manages over $4.0 billion in capital. For
more information, please visit www.spectrumequity.com.
About Great Hill Partners
GHP is a
private equity firm that manages over $2.5 billion in capital to finance
the expansion, recapitalization or acquisition of growth companies in a
wide range of sectors within the business and consumer services, media,
communications and software industries. GHP targets investments of $50
million to $150 million. For more information, please visit www.greathillpartners.com.
About Primus Capital Funds
Founded
in 1983, Primus Capital Funds (“Primus”) is a private equity
firm that invests in highgrowth companies within the healthcare,
business services, communications, and for-profit education industry
sectors. Transaction types include management-led buyouts, control and
noncontrol recapitalizations, and primary infusions of growth capital.
More information about Primus can be found at www.primuscapital.com.
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