PE Weekly: Healthcare Deals Make a Return
Healthcare-focused investors announce new deals this week, while public-sector software and education services are also in focus
Platform Investments
Avathon Capital Acquires Yellow Brick Road. Avathon Capital, a middle-market private equity firm focused on the education and workforce industries, has acquired Yellow Brick Road Early Childhood Development Center. The company operates a network of early childhood education centers in Minnestoa, Nebraska and Iowa. The acquisition is Avathon’s third in the early childhood education sector.
Gemspring Invests in Sitemetric. Gemspring Capital Management, a middle-market private equity firm, has made a strategic investment in jobsite security and workforce management solution provider Sitemetric. The company services the construction industry.
Add-Ons
KKR- and Veritas-Backed Cotiviti Acquires Edifecs. Health technology company Cotiviti has reached an agreement to acquire Edifecs, according to a recent press release. Cotiviti offers healthcare payers a data analytics solution that will be enhanced by Edifecs’ healthcare data management platform. Cotiviti is backed by KKR and Veritas Capital.
Concord Health’s NeuroFlow, Iris Telehealth Announce Acquisitions. Two portfolio companies of healthcare-focused Concord Health Partners announced recent acquisitions. Iris TeleHealth, which provides behavioral health services, acquired innovaYel, a telepsychiatry provider that had been a division of Quartet. NeuroFlow, meanwhile, acquired Quartet Health, a behavioral health enablement company.
Agellus Capital Forms Cybersecurity Services Platform. Agellus Capital has announced the formation of a IT and cybersecurity managed services platform through the combination of CompassMSP and BlackPoint IT Services, according to a recent announcement. The platform formation follows the firm’s acquisition of BlackPoint in September.
Strategics
Bluestar Alliance Acquires Palm Angels. Bluestar Alliance, a brand management company, has acquired Palm Angels, a luxury streetwear brand, according to a recent announcement. The investment follows Bluestar’s acquisition of Off-White from LVMH and further expands the firm’s presence in the luxury fashion and streetwear markets.
OpenGov Acquires Ignatius. AI-enabled local and state government software provider OpenGov has acquired Ignatius, a low-code platform that automates workflows for the public sector. OpenGov is owned by conglomerate Cox Enterprises.
Exits
Emerald Lake Exits Inno-Pak. Emerald Lake Capital Management, a private equity firm focused on the industrials and services sectors, has sold Inno-Pak, a manufacturer, importer and supplier of eco-friendly food packaging. Wynnchurch Capital has acquired the company, a press release noted.
Fundraising
IMB Partners Raises $125 Million. IMB Partners, a private investment firm based in Maryland, announced the close of its inaugural investment fund with $125 million in capital commitments. A press release said the fundraise exceeded its target by 25%. The fund will focus on investing in lower middle-market companies in the utilities and government contracting spaces.
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