Francisco Partners, the private equity firm with a stake in several healthcare technology vendors, has announced plans to acquire API Software, Inc., a Hartford, Wis.-based developer of labor management software and services for healthcare providers.
API offers staffing and scheduling, patient classification, payroll, human resources, productivity management, education tracking and access control software for healthcare providers. One of the company's more popular products is Payrollmation, a software suite that helps providers automate and manage time and attendance operations.
"API has demonstrated a solid record of growth in the healthcare marketplace while maintaining excellent client satisfaction," said Ezra Perlman, a partner of the San Francisco-based Francisco Partners, in a press release. "We intend to leverage this success to allow API to accelerate its growth and solidify its leadership position in the healthcare human resource market."
Founded in 1982, API Software has been led since then by founder and CEO Luis Garcia. Garcia praised the company for its success and said its future looks "very promising."
Following completion of the acquisition, expected to take place within 30 days, J.P. Fingado will become president and CEO of API Software. Fingado has more than 18 years of senior-level healthcare IT experience, including president and chief operating officer of Dynamic Healthcare Technologies. He also held several executive positions with Cerner after the company acquired Dynamic Healthcare in 2001.
"API has done a great job consistently meeting the needs of clients over the life of the company," Fingado said. "We are committed to driving new innovations and increasing our market presence through our Web-based solutions. With 60 percent of s healthcare organization's cost related to labor, API's solutions have a significant impact and are viewed as critically important by healthcare providers' senior management and boards."
Earlier this year, Francisco Partners acquired AdvancedMD, a Salt Lake City-based developer of physician billing and scheduling software as well as the AdvancedEMR solution. In addition, the company has invested in LYNX Medical Systems - which was acquired by Picis, Inc. last year - and Healthland, formerly Dairyland Healthcare Solutions. The company has roughly $5 billion in committed capital and has invested more than $4 billion in equity capital in more than 50 technology companies.
Is API Software a good fit for Francisco Partners? How is the economy affecting these types of deals? Send your comments to Managing Editor Eric Wicklund at eric.wicklund@medtechpublishing.com.