Centauri Health Solutions, Inc., an innovative provider of healthcare technology and services, today announced an agreement under which Abry Partners will acquire a majority stake in Centauri. With this transaction, Abry, one of the premier sector-focused private equity investment firms in North America, adds Centauri to its growing portfolio of healthcare IT investments.
Abry’s investment is intended to enable Centauri to further accelerate product development, expand sales and marketing efforts, and pursue strategic acquisitions.
Adam Miller, Centauri’s co-founder and CEO, commented on the transaction: “As we wrap up our most successful year to date, we are excited to welcome Abry as our new lead investor. Abry, along with our existing investors Silversmith Capital Partners and SV Health Investors, believes in Centauri’s strategic vision and the positive impact the Company’s solutions have on the lives of patients and health plan members. Abry’s investment will enable us to accelerate our growth and expand the suite of innovative technology and services we provide to our hospital and health plan clients nationwide.”
Jim Quagliaroli, Managing Partner of Silversmith said, “We’re incredibly pleased by the growth of Centauri since our initial investment in 2016. When we invested in Centauri, the Company had fewer than 100 employees, and now closed 2019 with over 1,200 employees. The management team has created exceptional value for the individuals they serve, their clients, and investors over the last four years, and we are excited to support the Company’s future growth.”
Nick Scola, Partner at Abry, noted that, “Centauri represents an ideal investment for Abry within one of our core industry verticals. Adam and his team have built an exceptional company that delivers tangible economic value to payors, providers and patients within an increasingly complex and competitive healthcare environment. We truly look forward to working with the Centauri leadership team to drive growth through continued investment in technology and people, as well as strategic M&A.”
SV Health’s Managing Partner, Michael Balmuth, added, “It has been a privilege to work with the Centauri team. They’ve proven the old adage of ‘doing well by doing good,’ in building shareholder value while helping patients in need and also creating a thriving environment for employees. We look forward to supporting Centauri’s continued expansion in partnership with management and our co-investors.”
The transaction is expected to close in Q1 2020, following the satisfaction of customary closing conditions. On closing, Nick Scola, Chris Ritchie and Joe Cammarosano of Abry will join Jim Quagliaroli of Silversmith, Michael Balmuth of SV Health, and CEO Adam Miller on Centauri’s Board of Directors.
William Blair & Company LLC, acted as exclusive financial advisor, while Choate Hall & Stewart LLP and Weiss Brown LLP acted as legal counsel to Centauri. Abry was advised by Kirkland & Ellis LLP and Robert W. Baird & Co.
About Centauri Health Solutions
Centauri Health Solutions provides services to payors and providers in government sponsored healthcare programs, including Medicare Advantage and Medicaid. In partnership with our clients, we improve the lives and health outcomes of the members and patients we touch through compassionate outreach, sophisticated analytics, and data-driven solutions. Our services directly address complex problems such as uncompensated care within health systems; appropriate, risk-adjusted revenue for specialized sub-populations; and quality of care measurement. Headquartered in Scottsdale, Ariz., Centauri Health Solutions employs more than 1,200 dedicated associates in seven U.S. locations. Centauri ranked No. 132 on Inc. Magazine’s 2019 Inc. 5000 list of the fastest-growing private companies in the U.S. For more information about Centauri, visit www.centaurihs.com.
About Abry Partners
Abry is one of the most experienced and successful sector-focused private equity investment firms in North America. Since their founding in 1989, the firm has completed over $82.0 billion of leveraged transactions and other private equity or preferred equity placements. Currently, the firm manages over $5.0 billion of capital across their active funds. For more information on Abry, please visit www.abry.com.
About Silversmith Capital Partners
Founded in 2015, Silversmith Capital Partners is a Boston-based growth equity firm with $1.1 billion of capital under management. Silversmith’s mission is to partner with and support the best entrepreneurs in growing, profitable technology and healthcare companies. The firm seeks to invest $20 million to $100 million per company. Representative investments include ActiveCampaign, Centauri Health Solutions, Digital Map Products, Impact, LifeStance Health, MediQuant, Nordic Consulting Partners, and Validity. The partners have over 75 years of collective investing experience and have served on the boards of numerous successful growth companies including Ability Network, Dealer.com, Liazon, Liberty Dialysis, MedHOK, Net Health, Passport Health, SurveyMonkey, Wrike and Yapstone. For more information, visit www.silversmithcapital.com.
About SV Health Investors
SV Health Investors, formerly named SV Life Sciences, is a healthcare and life sciences venture capital and growth equity firm. SV targets early-stage opportunities in biotechnology; early-stage and revenue-stage opportunities in medical devices; and growth equity investments for later-stage businesses in healthcare services and digital health. Over the past 25 years, SV has invested in more than 175 companies. The firm currently has over $2.9 billion in capital commitments raised across nine private venture capital funds and one publicly listed fund. SV Health Investors has offices in Boston and London. For more information, please visit www.svhealthinvestors.com.
