Citing a "solid track record in growth" over the past four years, a San Francisco-based private equity firm prepares to make its next purchase - AdvancedMD.
Francisco Partners, which focuses on technology firms, will acquire the Salt Lake City-based vendor of Web-based medical practice management solutions and will take-on a 20-year veteran in healthcare information technology as its new CEO.
Terms of the deal were not disclosed.
John Trzeciak, a healthcare adviser to Francisco Partners, will take over for Jim Pack as CEO. Trzeciak co-founded Health Systems International, Inc., which helped develop and maintain the Diagnoses Related Groups (DRGs) for Medicare and which has since, been acquired by 3M. More recently he served as interim CEO for LYNX Medical Systems and Dairyland Healthcare Solutions.
"Jim's leadership over the past four years has been key to AdvancedMD's success and instrumental in positioning it for the future," said Ezra Perlman, a partner at Francisco Partners. "We are grateful for what he has done for the company, and look forward to his continued involvement on the board of directors."
Francisco Partners officials said AdvancedMD's profitability - according to Pack, business had grown more than 600 percent over the past four years - and "its opportunity for sustained growth in the physician practice management market" led to the acquisition.
"Excellent value in products and services tailored specifically to the needs of the physician revenue management market has resulted in a solid track record of growth," said Perlman. "We intend to leverage this success with additional resources so that AdvancedMD can accelerate its growth and solidify its leadership position."
AdvancedMD boasts about 8,000 clients. Last fall, the company announced it was expanding its marketing efforts to management service organizations (MSOs), independent physician associations (IPAs) and physician hospital organizations (PHOs).
Francisco Partners has invested more than $3 billion in equity capital over 50 technology companies, and currently has $5 billion of capital under management.