PE-backed Net Health, a provider of cloud-based software for specialized outpatient care plans, has agreed to acquire Optima Healthcare Solutions, a Florida provider of cloud-based electronic medical record software. The Pittsburgh-based company plans to use the purchase to expand its EMR platform.
The transaction is expected to close in July. The combined company will serve patients in more than 14,000 facilities across North America.
“Both companies have a legacy of designing purpose-built, innovative solutions that have delighted providers for over two decades,” Net Health Chairman and CEO Anthony Sanzo said in a statement. "Our combined products, expertise, talent and resources will accelerate our ability to deliver the fully-connected data and predictive capabilities health care providers need to thrive in a value-based world."
Sanzo will continue in his role through the integration of the two companies. After the integration he will become Net Health’s executive chairman. Josh Pickus from Optima 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 based in Pittsburgh, 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.
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.