BOSTON, MA – Parthenon Capital, a private equity firm with offices in Boston and San Francisco, announced today that it completed an investment in a newly formed company created by the simultaneous merger of three leading anesthesia revenue cycle management companies. The new company, which has been named Abeo, Inc., is one of the largest national companies focused solely on the reimbursement needs of anesthesia physicians. Proceeds from the transaction were used to repurchase shares from certain former shareholders and to provide the company with growth capital to pursue new initiatives. Following the transaction, the shareholders of the three predecessor companies and affiliates of Parthenon Capital will own 100% of the new company.
The three predecessor companies, Salt Lake City-based Professional Management Group, Ft. Worth-based Summit HMR and Atlanta-based MedSuite, were each leaders in their respective categories of anesthesia reimbursement services. Together, the combined company offers anesthesia providers a full solution of billing, coding, collections, technology services and practice management on a national basis. This full solution enables customers to outsource their entire back-office billing function from data capture through collections. The company’s proprietary billing technology platform provides customers with an advanced data management and processing capability.
The company will be led by Mark Smith, an experienced HCIT and medical billing executive, and senior management from the three predecessor companies. Mr. Smith commented “I am excited to join forces with three great companies. Our ambition going forward is to provide the anesthesia market with the highest quality services in the industry. We will continue to invest heavily in technology and people in order to remain the industry leader in customer service and quality. We are pleased to have Parthenon Capital as our partner in this endeavor.”
David Ament, a Partner at Parthenon Capital who is involved in the firm’s healthcare and business services investments, said “We are very excited to be part of the combination of Summit, PMG and MedSuite. The combined company is one of the strongest we’ve seen in the provider billing space from a service and technology standpoint and we are excited to have the opportunity to partner with management in the future.”
Falcon Capital Partners, LLC advised Professional Management Group, Summit HMR and MedSuite in the transaction.
Parthenon Capital is a leading mid-market private equity firm with offices in Boston and San Francisco. Parthenon utilizes niche industry expertise and a deep execution team to invest in growth companies in service industries. Parthenon seeks to be an active and aligned partner to management, either through recapitalization transactions or by backing new executives. Parthenon has particular expertise in business services, financial and insurance services and healthcare, but seeks any service, technology or delivery business with a strong value proposition and proprietary know-how. Parthenon’s 25 person investment team has deep experience in corporate strategy, capital markets and operations, enabling the firm to pursue complex, multi-faceted opportunities. For more information, visit www.parthenoncapital.com.