Author Archives: Edgewater Funds

Edgewater Announces 2 Acquisitions By Bolder Healthcare Solutions

Bolder Healthcare Solutions

Edgewater Growth Capital Partners III, L.P. is pleased to announce that its portfolio company, Bolder Healthcare Solutions (“BHS”) has recently completed the acquisition of two significant revenue cycle management (“RCM”) companies.

BHS first announced the acquisition of Avectus Healthcare Solutions, based in Corinth, MS. Avectus is a leader in the resolution of complex third party liability and workers’ compensation accounts for hospitals and trauma centers. Avectus will continue to be led by its founder and CEO Tim Smith along with his experienced team.

The second acquisition is The ROI Companies (“ROI”) based in Timonium, MD. ROI provides critical services to hospitals and physician groups including insurance billing and follow-up, self-pay billing, coding, eligibility, consulting, cash acceleration and collections. The Company has offices in the Baltimore, Boston, Cleveland, Philadelphia and Washington, DC markets. Chris Wunder, ROI’s CEO and founder, will continue to lead his team in the management and growth of ROI.

Bolder Healthcare Solutions was formed in 2012 and offers a growing suite of best of breed healthcare revenue cycle management services to the Hospital and Physician marketplace. BHS is led by Mike Shea who previously was the founder and CEO of MedAssist. With the addition of Avectus and ROI, BHS now has over 1,500 employees in the US and India to serve over 500 clients across 47 states. BHS continues to pursue acquisitions of select, high quality RCM service providers.

Edgewater Announces Sale Of Dental Holdings Corporation

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Edgewater Growth Capital Partners II, L.P. (Edgewater) is pleased to announce the recent sale of its portfolio company Dental Holdings Corporation, doing business as Dental Services Group (“DSG” or the “Company”). DSG owns and operates the largest network of dental laboratories in North America. The Company manufactures and supplies dental prosthetic solutions including dentures, implants, orthodontic and sleep therapy products to over 10,000 customers, ranging from the largest dental practice management companies to individual dental practitioners. DSG was acquired by Cressey & Company, a highly respected private equity firm focused on health care industry investments.

Edgewater recruited an outstanding management team who successfully led the Company to become a low cost manufacturer, producing a wide range of quality products across every price point. The team completed 14 acquisitions to expand DSG’s product line and market coverage which resulted in a revenue growth rate that has outpaced the industry since 2011.

Edgewater’s Portfolio Company Triwater Announces Acquisition

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Edgewater Growth Capital Partners III, L.P. is pleased to announce that its water industry portfolio company Triwater Holdings, LLC has recently completed the acquisition of Paragon Water Systems, Inc. (“Paragon” or the “Company”). Paragon designs, develops and produces point of use water filtration products for leading global OEM clients, including major retailers, dealers and direct selling channels. Paragon offers its worldwide customers innovative R&D, proprietary technology and low cost manufacturing through their facilities in the U.S. and China. The Company has grown rapidly over the past several years as a result of new product and technology introductions and expansion into the Asian market.

Triwater has partnered in this investment with Paragon’s founders and they will continue to lead the Company’s operations.

Edgewater Adds Software Business to its Revenue Cycle Management Platform

Bolder Healthcare Solutions

Edgewater Growth Capital Partners III, L.P. is pleased to announce that its portfolio company BH Solutions, LLC (“BHS”) has recently acquired PPM Information Services, Inc. (“PPMIS” or the “Company”). BHS offers a growing suite of revenue cycle management services to large hospital and physician groups. PPMIS provides software and services for claims processing, collections management, reporting, patient scheduling, registration, coding, and financial management. The Company is an attractive addition to BHS’s Physician Services division, offering superior software capabilities, lower costs and an expanded customer base for the cross selling of other RCM services.

PPMIS was founded in 1996 and has operated as a wholly owned subsidiary of PPM Services Inc., a medical malpractice insurance company. PPMIS has developed a highly respected national reputation for innovation and quality. The Company has over 200 clients and 9,200 users including physician groups, medical billing companies, ambulatory surgical centers and hospitals. PPMIS will continue to be based in Mission, Kansas.

About Bolder Healthcare Solutions

Bolder Healthcare Solutions, LLC provides revenue cycle management (“RCM”) services to health care providers including hospitals, ambulatory surgery centers and physician groups. BHS employs over 800 people serving 450 client facilities across 26 states. In addition to its domestic operations, BHS manages two wholly owned operation centers in India. BHS is led by its CEO Mike Shea who previously was the Founder and CEO of MedAssist, a leading RCM company that served over 900 hospitals across the United States. BHS is actively building its portfolio of RCM services both organically and by acquisition. For additional information, contact Mike Shea at mshea@bolderhealthcare.com.

Edgewater Invests In Brilliance Financial Technology

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Edgewater Growth Capital Partners III, L.P. (“Edgewater”) is pleased to announce its recent investment in Brilliance Financial Technology (“Brilliance” or the “Company”). Brilliance is a software business that provides Risk-based Pricing and Customer Profitability measurement solutions to the banking industry commercial loan portfolios. The Company’s clients include some of the world’s largest financial institutions as they manage their global loan processes in the face of increasing risk and regulations. Brilliance is headquartered in Sydney, Australia with additional offices in New York and San Francisco and serves clients in North America, Europe, Australia, and Africa.

Brilliance is the first investment under a newly formed holding company called Implement Holdings, LLC. Implement Holdings is pursuing acquisitions of financial technology companies which enable financial institutions to improve operations and profitability in the areas of risk management, pricing, compliance, decision support, portfolio rebalancing and many others. Replacing outdated legacy information systems is expected to be a major priority for banks as they seek to increase revenues, reduce costs and improve regulatory compliance.

Industrial Service Solutions Expands With Four Recent Acquisitions

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Industrial Service Solutions (“ISS”), a portfolio company of Edgewater Growth Capital Partners III, L.P. is pleased to announce that it has recently completed four acquisitions:  Precision Electric Co., Inc. (“Precision Electric”), Integrated Process Technologies, Inc. (“IPT”), Pro Inspection, Inc. (“Pro Inspection”) and M&L Valve Service, Inc. (“M&L Valve”).  Each of these companies provides specialty industrial services to its client base and has built a reputation of quality, responsiveness and superior technical expertise.  These companies will augment the ISS platform with additional products and services, talented personnel and physical assets in new territories.

  • Precision Electric sells, services and repairs all makes and models of electric motors, pumps, controls and related equipment across the Southwestern U.S. The company is capable of providing repair or replacement solutions across all major motor and pump brands and models.
  • IPT distributes valves, actuators, pumps, cryogenics, controls, filtration systems, chemical storage systems and a variety of other process equipment. The company also provides value-added services including in-house engineering, shop assembly and testing capabilities.
  • Pro Inspection provides non-destructive testing and inspection of pipes, weld joints, compressors, pressure vessels and other fabricated products and equipment used by companies in various industrial and commercial markets.
  • M&L Valve specializes in valve distribution, repair and field services primarily for customers in the oil & gas and power generation industries.

ISS is building a national provider of industrial field services, repair and refurbishment of equipment found in most industrial and manufacturing facilities in North America.  This market is extremely fragmented, making it difficult for major industrial companies to find a reliable single source of repair and maintenance services for mission critical equipment. Equipment in which ISS has particular expertise includes valves, actuators, motors/generators, pumps and compressors that are critical to maintaining plant operations and minimizing downtime.  Since inception, ISS completed fifteen acquisitions and maintains over 25 service and distribution locations across the U.S. with over 500 skilled technicians.  This combination of human and physical assets enables ISS to offer a broad and valuable set of solutions to its expansive customer base.  The company maintains a robust pipeline of complementary companies that should continue the current pace of expansion and profitable growth.

Edgewater Announces Vertical Bridge Investment

Vertical Bridge

Edgewater Growth Capital Partners III, L.P. (“Edgewater” or the “Fund”) is pleased to announce its recent investment in Vertical Bridge Holdings, LLC (“Vertical Bridge” or the “Company”). Vertical Bridge is an owner and manager of wireless communications infrastructure. Edgewater is partnering with the same management team that grew a very similar business, Global Tower Partners (“GTP”), from its inception in 2002 to the largest private operator of wireless communications infrastructure in North America. GTP was ultimately sold to American Tower in 2013 for $4.8 billion.

Vertical Bridge is executing the same investment thesis that its management team followed in building GTP. The Company is acquiring cell towers and rooftop cell sites to build out its national mobile communications network. The rapid growth of wireless data usage is leading to greater network demand from mobile carriers who are Vertical Bridge’s core customers. We believe Vertical Bridge represents an excellent ground floor opportunity to partner with a proven, world class management team in an industry sector with strong growth trajectory.

Edgewater Announces The Sale Of Its Portfolio Company Amptek

Amp Tek

Edgewater Growth Capital Partners III, L.P. (“Edgewater”) is pleased to announce the sale of its portfolio company Amptek, Inc. Amptek is the market leader in producing detectors using x-ray fluorescence (XRF) used to identify the composition of materials within the metal, environmental monitoring, petrochemical, semiconductor and research markets. Edgewater acquired Amptek in December 2011.

Amptek was recently sold to Ametek, Inc., a publicly traded global manufacturer of electronic instrument with over 120 manufacturing locations around the world. Ametek acquired Amptek as a strategic addition to its Materials Analysis Division. Edgewater would like to acknowledge the excellent management team who led Amptek under Edgewater’s ownership through to this successful transaction.

Edgewater Acquires Netcentrics To Expand Its Cybersecurity Business

Haystax Technology

Edgewater Growth Capital Partners III, L.P. (“Edgewater” or the “Fund”) is pleased to announce the recent acquisition of NetCentrics as a significant addition to the Fund’s cybersecurity platform Haystax Technology (“Haystax”). NetCentrics (“NetCentrics” or the “Company”) provides cybersecurity solutions to the Department of Defense, Department of Homeland Security, DARPA and other federal agencies. The Company is based in Herndon, Virginia and has over 280 employees.

Edgewater acquired NetCentrics to extend the range of critical capabilities at Haystax, including enterprise cybersecurity and IT network integration, while increasing access to additional new government service programs. NetCentrics is expected to be highly synergistic with Haystax’ first two acquisitions, FlexPoint and Digital Sandbox, through cross selling and bundling of services within major customer contracts.

The Haystax platform is well positioned to benefit from the increasing demand for cybersecurity products and services within both the governmental and private sectors.

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Edgewater Announces Specialty Insurance Investment

Edgewater Growth Capital Partners III, L.P. (“Edgewater”) is pleased to announce its recent investment in State National Companies, Inc. (“State National” or the “Company”). State National is a forty year old specialty insurance business based in Bedford, Texas with 390 employees. State National is a leading provider of services to specialty general agents and collateralized lenders through its Program Services and Lender Services lines of business. Edgewater is backing Terry Ledbetter, a highly respected industry veteran who has led the Company since its founding in 1973. State National recently signed several large new business partnerships and will utilize the newly invested equity to support their accelerated growth plan which is expected to double earnings in the next few years. In addition, Edgewater’s investment opportunity was created by the need for a founding shareholder to sell his stock due to serious health issues.

State National’s Program Services segment leverages the Company’s A.M. Best “A” rating and expansive insurance licenses to its customers in exchange for a ceding fee. Rather than take on underwriting risk which is the typical practice in the insurance industry, the Company cedes most underwriting exposure to reinsurance providers. Over the last 25 years, the Company has ceded $10 billion of insurance premiums with no losses. The Lender Services segment specializes in providing collateral protection insurance (“CPI”) to lenders, primarily credit unions, who make automobile loans. Positive trends in the CPI market are driven by growth in the lenders’ portfolios from rising auto sales, higher average loan sizes and increasing credit availability.

State National represents a compelling opportunity to back a seasoned management team with a differentiated business model and strong track record.

 

Edgewater Announces Specialty Insurance Investment (115 KB)